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William Blair & Company LLC

07/26/2021 | Press release | Distributed by Public on 07/26/2021 08:23

LegalZoom.com, Inc.: Initiation of Research Coverage

William Blair initiated research coverage of LegalZoom.com, Inc. (LZ $39.07), the market leader in providing online legal services for small businesses.

Analyst Matt Pfau estimated that the company would generate revenue of $558.7 million in 2021 and $683.7 million in 2022.

'The legal and regulatory aspects of running a business are still mostly managed through offline law practices, which are costly and inefficient for simple tasks,' Pfau said. 'Much like Intuit did with TurboTax in the tax preparation market, LegalZoom aims to enable small businesses to complete certain legal transactions themselves through software that guides them through the process. Further, the company provides access to attorneys and accountants through monthly subscription plans that enable small-business owners to get their legal and tax questions answered in an efficient and cost-effective manner.'

William Blair is the premier global boutique with expertise in investment banking, investment management, and private wealth management. We provide advisory services, strategies, and solutions to meet our clients' evolving needs. As an independent and employee-owned firm, together with our strategic partners, we operate in more than 20 offices worldwide.*

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*Includes strategic partnerships with Allier Capital, BDA Partners, and Poalim Capital Markets.

William Blair or an affiliate does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. This report is not intended to provide personal investment advice. The opinions and recommendations herein do not take into account individual client circumstances, objectives, or needs and are not intended as recommendations of particular securities, financial instruments, or strategies to particular clients. The recipient of this report must make its own independent decisions regarding any securities or financial instruments mentioned herein.

William Blair or an affiliate was a manager or co-manager of a public offering of equity securities for LegalZoom.com, Inc. within the prior 12 months.

William Blair or an affiliate is a market maker in the security of LegalZoom.com, Inc.

William Blair or an affiliate expects to receive or intends to seek compensation for investment banking services from LegalZoom.com, Inc. or an affiliate within the next three months.

William Blair or an affiliate received compensation for investment banking services or non-investment-banking services from LegalZoom.com, Inc. within the last 12 months. LegalZoom.com, Inc. is or was, within the last 12 months, an investment banking client of William Blair & Company and/or one or more of its affiliates.

Officers and employees of William Blair or its affiliates (other than research analysts) may have a financial interest in the securities of LegalZoom.com, Inc.

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Current Ratings Distribution (as of 7/23/21)

Coverage Universe
Outperform (Buy): 77%
Market Perform (Hold): 23%
Underperform (Sell): 1%

Inv. Banking Relationships*
Outperform (Buy): 30%
Market Perform (Hold): 11%
Underperform (Sell): 0%

* Percentage of companies in each rating category that are investment banking clients, defined as companies for which William Blair has received compensation for investment banking services within the past 12 months.

The compensation of the research analyst is based on a variety of factors, including the quality and accuracy of research, client feedback, contributions to other firm departments, competitive factors, and firm profitability.

OTHER IMPORTANT DISCLOSURES

Stock ratings and valuation methodologies: William Blair & Company, L.L.C. uses a three-point system to rate stocks. Individual ratings reflect the expected performance of the stock relative to the broader market (generally the S&P 500, unless otherwise indicated) over the next 12 months. The assessment of expected performance is a function of near-, intermediate-, and long-term company fundamentals, industry outlook, confidence in earnings estimates, valuation (and our valuation methodology), and other factors. Outperform (O) - stock expected to outperform the broader market over the next 12 months; Market Perform (M) - stock expected to perform approximately in line with the broader market over the next 12 months; Underperform (U) - stock expected to underperform the broader market over the next 12 months; not rated (NR) - the stock is not currently rated. The valuation methodologies include (but are not limited to) price-to-earnings multiple (P/E), relative P/E (compared with the relevant market), P/E-to-growth-rate (PEG) ratio, market capitalization/revenue multiple, enterprise value/EBITDA ratio, discounted cash flow, and others. Stock ratings and valuation methodologies should not be used or relied upon as investment advice. Past performance is not necessarily a guide to future performance.

The ratings and valuation methodologies reflect the opinion of the individual analyst and are subject to change at any time.

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