Why LegalZoom Stock Is Falling After Hours

Why LegalZoom Stock Is Falling After Hours

LegalZoom.com Inc LZ shares are trading lower in Thursday's after-hours session after the company reported financial results and cut guidance below analyst estimates.

LegalZoom said second-quarter revenue increased 9% year-over-year to $163.9 million, which beat the estimate of $161.6 million, according to Benzinga Pro. The company reported quarterly adjusted earnings of 5 cents per share, which beat the estimate of 2 cents per share.

"We had a strong first half of 2022, highlighted by subscription revenue growth of more than 30%. However, we are anticipating a tougher operating environment in the back half of the year and are lowering our revenue expectations accordingly," said Noel Watson, CFO of LegalZoom.

LegalZoom expects third-quarter revenue to be between $149 million and $151 million versus the estimate of $171.21 million. The company cut its full-year revenue guidance from a range of $650 million to $660 million to a range of $612 million to $616 million versus the estimate of $653.17 million.

LZ Price Action: LegalZoom has a 52-week high of $17.36 and a 52-week low of $8.64.

The stock was down 6.37% in after-hours at $10.29 at press time.

Photo: NomeVisualizzato from Pixabay.

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