Stock daily read

What happened with LZ today?

Why it moved
Explains possible causes using the day’s news and filings
Moving with the market?
Uses market moves and trading volume to assess what drove the change
What to watch next
The next thing that could change the call, and what to look for

No read yet

Uses news and trading volume to explain the day’s move and how it relates to the market.

Investment outlook

LZ in three months: buy, wait or sell?

Stop guessing. Get the call, a three-month target price, the best and worst cases, and a source for every claim.

In the report
  • Buy / Wait / Sell rating
  • 3-month target price
  • Bear · Base · Bull
  • vs. the market

Company

Company overview

LegalZoom.com, Inc. helps U.S. customers form businesses, prepare legal documents and manage ongoing compliance. Customers can use online questionnaires that generate documents tailored to their jurisdiction or pay for human assistance and services handled on their behalf. Individuals also use the platform for needs such as estate planning.

Most revenue comes from subscriptions for ongoing services, including compliance support, virtual mail and access to attorneys through legal plans. The company also charges for one-time services, with business formation supplying most transaction revenue. Subscriptions primarily begin when customers buying one-time services choose to subscribe, so the business depends on attracting formation customers, converting them into subscribers and keeping them buying and renewing.

Laws restricting the unauthorized practice of law generally prevent LegalZoom from giving legal advice directly. Its legal plans connect customers with independent, appropriately licensed attorneys, whose continued availability supports those services. Its Arizona-licensed subsidiary, LZ Legal Services, LLC, can employ and contract with attorneys to provide limited-scope legal services.

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Source: SEC filing

Red flags

Know what’s buried in LZ’s filings before you buy

The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.

Sorted into
  • Happening now
  • Could go wrong
  • Built in

Moat

LZ says it has a moat. Does it hold up?

Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.

Each edge rated
  • Strong
  • Moderate
  • Limited
  • Unproven

Related companies

LegalZoom’s results depend on U.S. business formations, compliance requirements and customers keeping recurring service subscriptions—not the broad software businesses represented here.

Agenda

in 16 daysWed, Nov 4

  1. Time to be announced
    Major

    LegalZoom.com, Inc. earningsThis company

    LegalZoom’s report will show whether subscriptions keep growing alongside one-time formation and filing purchases, or whether those purchases are carrying revenue growth.