Why LegalZoom Stock Dived by 30% Today
While second-quarter fundamentals were broadly in line with analyst estimates, investors were concerned about other developments.
Overview
A shift in online search algorithms and lowered revenue guidance were the two key factors sending LegalZoom (NASDAQ: LZ) down by 30%. This happened after the company reported second-quarter earnings on Wednesday that raised significant concerns.
For the period, LegalZoom collected revenue of $205.3 million, a 7% year-over-year increase. This was largely due to subscription revenue, which rose by 11%; the company noted that this was the fifth consecutive quarter of double-digit growth in the category.
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Originally published at www.fool.com.
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