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Investing.com -- LegalZoom.com, Inc. (NASDAQ:LZ) reported first-quarter earnings that exceeded analyst expectations, driving shares up 14.6% in after-hours trading.
The online legal technology company posted revenue of $183.1 million for the quarter, surpassing the consensus estimate of $177.12 million and representing a 5% increase YoY. Adjusted earnings per share came in at $0.13, in line with analyst projections.
LegalZoom’s subscription revenue, a key growth driver, rose 8% YoY to $116.3 million. The company reported a 20% YoY increase in subscription units at the end of the period.
"Our first quarter results reflect accelerating subscription growth and solid progress towards our goal of double-digit subscription revenue growth in the fourth quarter," said Jeff Stibel, Chairman and CEO of LegalZoom.
For the second quarter, LegalZoom forecasts revenue between $181 million and $185 million, with the midpoint slightly above the analyst consensus of $181.9 million. The company reiterated its full-year revenue growth outlook of approximately 5% YoY.
Adjusted EBITDA for the quarter jumped 33% YoY to $37 million, with margins expanding 400 basis points to 20%. LegalZoom maintained its full-year adjusted EBITDA guidance of about $165 million.
The company also announced a $100 million increase to its share repurchase authorization, bringing the total available for buybacks to approximately $150 million.
LegalZoom’s stock movement reflects investor optimism about the company’s performance and outlook amid economic uncertainties.
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