Yahoo Finance Eventbrite, Inc. (NYSE:EB) Just Reported, And Analysts Assigned A US$10.60 Price Target
The quarterly results for Eventbrite, Inc. (NYSE:EB) were released last week, making it a good time to revisit its performance. Revenues were in line with expectations, at US$67m, while statutory losses ballooned to US$0.21 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Eventbrite
Taking into account the latest results, the consensus forecast from Eventbrite's seven analysts is for revenues of US$325.1m in 2023, which would reflect a sizeable 31% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 45% to US$0.42. Before this earnings announcement, the analysts had been modelling revenues of US$331.4m and losses of US$0.46 per share in 2023. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for next year.
The consensus price target fell 10% to US$10.60despite the forecast for smaller losses next year. It looks like the ongoing lack of profitability is starting to weigh on valuations. 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. The most optimistic Eventbrite analyst has a price target of US$16.00 per share, while the most pessimistic values it at US$8.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Eventbrite is forecast to grow faster in the future than it has in the past, with revenues expected to display 24% annualised growth until the end of 2023. If achieved, this would be a much better result than the 9.5% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually. Not only are Eventbrite's revenues expected to improve, it seems that the analysts are also expecting it 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Eventbrite going out to 2024, and you can see them free on our platform here..
Even so, be aware that Eventbrite is showing 2 warning signs in our investment analysis , you should know about...
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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.
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