LegalZoom completes sale of Texas property for $37.75 million

Published 01/04/2025, 21:12
LegalZoom completes sale of Texas property for $37.75 million

LegalZoom.com, Inc. (NASDAQ:LZ), a $1.53 billion market cap company specializing in online legal technology services with impressive gross profit margins of 64.79%, has finalized the sale of its Austin, Texas property. According to InvestingPro analysis, the company maintains a strong balance sheet with more cash than debt. The transaction, which took place on March 31, 2025, involved the sale of real estate located at 9900 Spectrum Drive to the Round Rock Independent (LON:IOG) School District.

The property was sold for an aggregate cash purchase price of $37,750,000. This sale was conducted through LegalZoom’s wholly owned subsidiary, 9900 Spectrum LLC. The terms of the sale were outlined in the Property Purchase Agreement and Escrow Instructions, dated September 23, 2024. Based on InvestingPro’s Fair Value analysis, LegalZoom currently appears undervalued in the market, with 16 additional ProTips available for subscribers.

LegalZoom confirmed that there were no material relationships between the seller or its affiliates and the buyer outside of this transaction. The sale did not involve any of the company’s directors, officers, or associates, or any of their affiliates, beyond the scope of this property transaction.

The completion of this asset disposition was disclosed in a Form 8-K filing with the United States Securities and Exchange Commission (SEC) on April 1, 2025, as required by regulations. LegalZoom’s Chief Financial Officer, Noel Watson, signed off on the filing, ensuring compliance with the SEC’s reporting requirements.

The sale of the property is a significant financial transaction for LegalZoom, though the company has not disclosed any specific plans for the use of the proceeds from this sale. Investors and interested parties can refer to the SEC filing for detailed information about this completed transaction.

In other recent news, LegalZoom.com, Inc. announced its fourth-quarter earnings results, reporting an earnings per share (EPS) of $0.19, which exceeded analyst expectations by $0.03. The company’s revenue for the quarter reached $161.7 million, slightly surpassing the consensus estimate of $160.81 million and marking a 2% year-over-year increase. LegalZoom has projected its first-quarter 2025 revenue to be between $175 million and $179 million, with an anticipated adjusted EBITDA ranging from $33 million to $36 million. Additionally, LegalZoom forecasts a 5% revenue growth for the full year 2025, with an adjusted EBITDA margin of approximately 23%.

In strategic developments, LegalZoom sold its Austin office for $38 million and is opening new leased offices in Austin and Sherman Oaks to support its growth plans. The company also appointed Pratik Savai as its new Chief Technology Officer to advance its technology platform. In analyst ratings, both Citizens JMP and Raymond (NSE:RYMD) James have maintained a Market Perform rating on LegalZoom, with analysts noting the company’s strategic initiatives and growth potential. Raymond James adjusted its revenue projections for 2025 and 2026, reflecting the impact of LegalZoom’s acquisition of Formation Nation and expected acceleration in subscription revenue growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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