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Upturn AI SWOT - About
LegalZoom.com Inc (LZ)
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Stock price based on last close (see disclosures)
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Upturn Advisory Summary
07/03/2025: LZ (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
10 Analysts rated it
Moderately tracked stock, growing coverage, gaining market and investor attention.
1 Year Target Price $9.79
1 Year Target Price $9.79
| 1 | Strong Buy |
| 1 | Buy |
| 6 | Hold |
| 1 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit -20.03% | Avg. Invested days 32 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 07/03/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.65B USD | Price to earnings Ratio 53.65 | 1Y Target Price 9.79 |
Price to earnings Ratio 53.65 | 1Y Target Price 9.79 | ||
Volume (30-day avg) 10 | Beta 1.25 | 52 Weeks Range 5.33 - 10.60 | Updated Date 07/5/2025 |
52 Weeks Range 5.33 - 10.60 | Updated Date 07/5/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 0.17 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Earnings Date
Report Date 2025-06-06 | When After Market | Estimate 0.1 | Actual 0.13 |
Profitability
Profit Margin 4.39% | Operating Margin (TTM) -2.56% |
Management Effectiveness
Return on Assets (TTM) 3.98% | Return on Equity (TTM) 17.09% |
Valuation
Trailing PE 53.65 | Forward PE 12.84 | Enterprise Value 1457040664 | Price to Sales(TTM) 2.39 |
Enterprise Value 1457040664 | Price to Sales(TTM) 2.39 | ||
Enterprise Value to Revenue 2.11 | Enterprise Value to EBITDA 16.94 | Shares Outstanding 181184000 | Shares Floating 117296964 |
Shares Outstanding 181184000 | Shares Floating 117296964 | ||
Percent Insiders 4.62 | Percent Institutions 86.17 |
Upturn AI SWOT
LegalZoom.com Inc
Company Overview
History and Background
LegalZoom.com Inc. was founded in 1999. It aimed to democratize legal services by providing online legal solutions to individuals and small businesses. It has grown from offering basic legal documents to providing subscription-based legal advice and services.
Core Business Areas
- Business Formation: Assists individuals and small businesses in forming legal entities such as LLCs, corporations, and nonprofits.
- Estate Planning: Offers services for creating wills, trusts, and other estate planning documents.
- Intellectual Property: Provides assistance with trademark registration and copyright filings.
- Legal Advice: Connects customers with attorneys for legal advice through subscription plans.
Leadership and Structure
The leadership team includes the CEO, CFO, and other key executives. The organizational structure consists of various departments including product development, marketing, sales, and legal services.
Top Products and Market Share
Key Offerings
- Estimated Users/Revenue: Estimated revenue from business formations contribute a significant portion of total revenue; specific numbers are proprietary. They hold a leading market share.
- LLC Formation: Helps entrepreneurs form limited liability companies. LegalZoom dominates the online LLC formation market. Competitors include Incfile, ZenBusiness, and Northwest Registered Agent.
- Estimated Users/Revenue: This segment also drives considerable revenue. Specific market share data is not publicly available but is a major part of LegalZoom's business.
- Wills and Trusts: Offers online tools and attorney assistance for creating wills and trusts. Competitors include Trust & Will, Quicken WillMaker & Trust.
- Estimated Users/Revenue: Subscription revenue is a growing part of their business. Specific subscriber numbers are proprietary.
- LegalZoom Legal Plan: Subscription service providing access to attorneys for legal advice and document review. Competitors include traditional law firms and other online legal service providers.
Market Dynamics
Industry Overview
The legal services industry is undergoing digital transformation, with increasing demand for online legal solutions due to convenience and affordability.
Positioning
LegalZoom is positioned as a leading online legal solutions provider, targeting individuals and small businesses seeking affordable and accessible legal services.
Total Addressable Market (TAM)
The total addressable market for online legal services is estimated to be billions of dollars. LegalZoom is positioned to capture a significant portion of this TAM through its brand recognition and range of services.
Upturn SWOT Analysis
Strengths
- Strong brand recognition
- Large customer base
- Wide range of services
- Subscription revenue model
- Extensive online platform
Weaknesses
- Customer service issues reported
- Higher price points compared to some competitors
- Dependency on marketing spend for customer acquisition
- Scalability challenges with legal advice services
Opportunities
- Expansion into new legal service areas
- Partnerships with other businesses
- International expansion
- Increased adoption of online legal services
- Further develop its AI legal tools
Threats
- Competition from other online legal service providers
- Changes in legal regulations
- Economic downturn impacting small business formation
- Data security breaches
Competitors and Market Share
Key Competitors
- CTAS
- INCN
- ZENB
Competitive Landscape
LegalZoom has a strong brand advantage but faces competition from other online legal service providers offering lower prices or specialized services. ZenBusiness focuses on business formation, and Incfile offers similar services at competitive rates.
Major Acquisitions
Earth Class Mail
- Year: 2021
- Acquisition Price (USD millions): 38
- Strategic Rationale: The acquisition expands LegalZoomu2019s services to include virtual mail management for small businesses, enhancing their offerings for business formation clients.
Growth Trajectory and Initiatives
Historical Growth: LegalZoom has experienced significant growth in revenue and customer base since its founding.
Future Projections: Analyst estimates suggest continued growth in revenue and profitability, driven by increasing demand for online legal services. These estimations fluctuate with the market
Recent Initiatives: Strategic initiatives include expanding subscription services, improving customer service, and investing in technology to enhance the user experience.
Summary
LegalZoom is a well-established player in the online legal services market with a strong brand and a wide range of offerings. Its subscription-based model provides recurring revenue, but it needs to address customer service concerns and manage competitive pressures. The company's growth prospects are positive, driven by the increasing adoption of online legal solutions, though there are financial risks.
Peer Comparison
Sources and Disclaimers
Data Sources:
- LegalZoom.com Inc. Investor Relations
- SEC Filings
- Third-party Market Research Reports
- Analyst Reports
Disclaimers:
This analysis is based on publicly available information and analyst estimates. The information is for informational purposes only and should not be considered investment advice. Market share data may vary based on different sources and methodologies.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About LegalZoom.com Inc
Exchange NASDAQ | Headquaters Mountain View, CA, United States | ||
IPO Launch date 2021-06-30 | CEO & Chairman Mr. Jeffrey M. Stibel | ||
Sector Industrials | Industry Specialty Business Services | Full time employees 964 | Website https://www.legalzoom.com |
Full time employees 964 | Website https://www.legalzoom.com | ||
LegalZoom.com, Inc. together with its subsidiaries, operates an online platform that supports the legal, compliance, and business management needs of small businesses and consumers in the United States. The company's platform offers business formation products, such as limited liability company, incorporation of C and S corporations, nonprofit formations, doing-business-as, corporate changes and filings, business licenses, legal forms, and beneficial ownership information reports; and intellectual property products consisting of trademark and patent applications, and copyright registrations. It also provides consumer, estate planning, and other services comprising last will and testament, living will, living trust, power of attorney, and name change. In addition, the company offers subscriptions services, including registered agent, compliance, attorney advice, tax advice and preparation, eSignature, virtual mail and check deposit services, trademark monitoring, and estate planning bundle. The company was incorporated in 1999 and is headquartered in Mountain View, California.
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