LegalZoom Stock Hits All-Time Low as CEO Departs, Company Cuts Outlook

Shares of LegalZoom (LZ) plunged 30% to an all-time debased Wednesday arsenic nan online ineligible services supplier announced Chief Executive Officer (CEO) Dan Wernikoff was leaving and trim its full-year guidance.

The institution reported that Wernikoff “will beryllium departing,” and will beryllium replaced by existent committee chair Jeffrey Stibel, effective immediately. Wernikoff’s had been CEO since October 2019, and took LegalZoom nationalist successful 2021.

'Right Time for This Transition'

The institution explained that this was nan “right clip for this transition,” arsenic shifts its attraction “towards subscription-based gross to thrust semipermanent profitable growth.”

John Murphy, who was appointed Lead Independent Director, explained that nan committee identified Stibel “as nan perfect CEO to lead LegalZoom’s adjacent chapter.” Stibel has been connected nan committee since 2014, and arsenic an entrepreneur helped motorboat respective tech companies. He was besides co-founder, on pinch erstwhile NBA awesome Kobe Bryant, of nan venture capital money Bryant Stibel.

Along pinch nan CEO change, LegalZoom said it was reducing its 2024 gross outlook to $675 cardinal to $685 cardinal from nan erstwhile $700 cardinal to $720 million. It besides trim its free rate flow to a scope of $75 cardinal to $85 million, compared to its earlier estimate of $85 cardinal to $95 million. The institution didn’t springiness a logic for nan changes.

LegalZoom shares plummeted much than 30% to $5.44 arsenic of 10:12 a.m. ET Wednesday. They fell to an all-time debased $5.33 soon aft markets opened.