In the past 12 months, LZ’s stock price has fallen 72.7% vs. Operating income by quarter has remained heavily negative, with no obvious path to breakeven:ĥ Quarter Operating Income (Seeking Alpha)Įarnings per share (Diluted) have also remained materially negative in the past 5 quarters:ĥ Quarter Earnings Per Share (Seeking Alpha) Selling, G&A expenses as a percentage of total revenue by quarter have generally trended higher in recent quarters:ĥ Quarter Selling, G&A % Of Revenue (Seeking Alpha) Gross profit by quarter has essentially plateaued: Total revenue by quarter has risen in recent quarters, albeit unevenly: Major competitive or other industry participants include: LZ seeks to continue its growth by launching into adjacent service areas, offer additional API access to third-party solution providers and provide higher-priced, higher value services. That amount comprises $18.3 billion in business formation services, $21.5 billion in additional small business services throughout a business' life cycle and $8.8 billion in consumer estate planning services. Management views the serviceable addressable market size as at least $49 billion. Management has said that a significant majority of its customers purchased one year of one of its subscription services at the time of their initial formation purchase. The firm then tries to continue the relationship, seeking to upsell the customer into a subscription service offering. The first customer touch point is usually at the business formation stage. Management is headed by Chief Executive Officer Dan Wernikoff, who has been with the firm since October 2019 and was previously Executive Vice President and General Manager of the Consumer Tax Group at Intuit. Glendale, California-based LegalZoom was founded to help individuals and small businesses obtain legal forms and agreement templates for various functions.
Until the firm makes a meaningful move toward operating breakeven or growth multiples improve, I’m on Hold for LZ in the near term. The firm sells an array of legal & financial software, services and products in the United States. ( NASDAQ: LZ) went public in June 2021, raising approximately $535 million in gross proceeds from an IPO that priced at $28.00 per share.
0 kommentar(er)
