Investors in Eventbrite, Inc. (NYSE:EB) had a good week, as its shares rose 2.4% to close at US$5.51 following the release of its quarterly results. Revenues were in line with expectations, at US$86m, while statutory losses ballooned to US$0.05 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Eventbrite's seven analysts is for revenues of US$365.8m in 2024. This would reflect a solid 9.4% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 27% to US$0.14. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$366.7m and losses of US$0.14 per share in 2024.
As a result, it's unexpected to see that the consensus price target fell 12% to US$8.95, with the analysts seemingly becoming more concerned about ongoing losses, despite making no major changes to their forecasts. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Eventbrite, with the most bullish analyst valuing it at US$12.00 and the most bearish at US$6.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Eventbrite's growth to accelerate, with the forecast 13% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Eventbrite to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Eventbrite going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Eventbrite that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.