2024-07-10 17:11:00

LegalZoom (NASDAQ:LZ) saw its shares drop by over 25% after announcing a new CEO and revising its full-year revenue forecast. Jeffrey Stibel, the current Chairman of the Board, has been appointed as the new CEO, while John Murphy is now the Lead Independent Director. Outgoing CEO Dan Wernikoff is leaving the company as LegalZoom shifts focus to subscription-based revenue for long-term growth. For the second quarter, revenue is projected to be between $172 million and $176 million, with adjusted EBITDA expected to be between $25 million and $27 million. However, the full-year revenue forecast has been revised downward to $675 million to $685 million, with free cash flow expected to be between $75 million and $85 million. Despite these changes, LegalZoom maintains its full-year adjusted EBITDA guidance of $135 million to $145 million.