Analyst Estimates: Here's What Brokers Think Of Kaltura, Inc. (NASDAQ:KLTR) After Its First-Quarter Report
Shareholders of Kaltura, Inc. (NASDAQ:KLTR) will be pleased this week, given that the stock price is up 18% to US$1.87 following its latest first-quarter results. Sales hit US$43m in line with forecasts, although the company reported a statutory loss per share of US$0.09 that was somewhat smaller than the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Kaltura
Following last week's earnings report, Kaltura's nine analysts are forecasting 2023 revenues to be US$171.9m, approximately in line with the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 33% to US$0.31. Before this earnings announcement, the analysts had been modelling revenues of US$171.4m and losses of US$0.33 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 this year.
There's been no major changes to the consensus price target of US$3.18, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Kaltura at US$6.00 per share, while the most bearish prices it at US$1.75. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Kaltura's rate of growth is expected to accelerate meaningfully, with the forecast 1.2% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 0.8% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 12% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Kaltura is expected to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Kaltura going out to 2025, and you can see them free on our platform here..
Plus, you should also learn about the 2 warning signs we've spotted with Kaltura .
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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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