FMP

FMP

Enter

LegalZoom (NASDAQ:LZ) shares plummeted over 25% on Wednesday following the announcement of a new CEO and a downward revision of its full-year revenue forecast.

LegalZoom Shares Plunge 25% After CEO Change and Reduced Revenue Forecast

- (Last modified: Jul 11, 2024 3:05 AM)

twitterlinkedinfacebook
blog post cover photo

Image credit: FMP

LegalZoom (NASDAQ:LZ) shares plummeted over 25% on Wednesday following the announcement of a new CEO and a downward revision of its full-year revenue forecast.

The company disclosed that Jeffrey Stibel, currently the Chairman of the Board of Directors, has been appointed as the new CEO effective immediately. Additionally, John Murphy has been named the Lead Independent Director of the Board.

Outgoing CEO Dan Wernikoff decided to leave the company and resign from the Board, stating that the transition is timely as LegalZoom shifts its focus towards subscription-based revenue to achieve long-term profitable growth.

For the second quarter, LegalZoom maintains its revenue projection between $172 million and $176 million, with adjusted EBITDA expected to be between $25 million and $27 million.

However, for the full year, the company revised its revenue forecast downward to a range of $675 million to $685 million and reduced its free cash flow expectation to between $75 million and $85 million.

Despite these adjustments, LegalZoom reiterated its full-year adjusted EBITDA guidance, which remains in the range of $135 million to $145 million.

Other Blogs

Nov 25, 2023 6:39 AM - Parth Sanghvi

DCF Valuation vs. Comparable Companies Analysis: Choosing the Right Valuation Method

Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...

blog post title

Dec 23, 2023 2:19 AM - Parth Sanghvi

Understanding the Limitations of DCF Analysis: A Guide to Overcoming Challenges

Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...

blog post title

Dec 25, 2023 2:28 AM - Parth Sanghvi

Integrating Sustainability into Valuations: Navigating ESG Factors within the Discounted Cash Flow (DCF) Model

Introduction: The investment landscape is undergoing a profound shift with a heightened emphasis on sustainability and responsible investing. In this blog post, we explore the intersection of Environmental, Social, and Governance (ESG) considerations within the Discounted Cash Flow (DCF) model, h...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep