Earnings Update: 1stdibs.Com, Inc. (NASDAQ:DIBS) Just Reported And Analysts Are Boosting Their Estimates
Shareholders of 1stdibs.Com, Inc. (NASDAQ:DIBS) will be pleased this week, given that the stock price is up 11% to US$5.25 following its latest annual results. Revenue hit US$85m in line with forecasts, although the company reported a statutory loss per share of US$0.57 that was somewhat smaller than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for 1stdibs.Com
Taking into account the latest results, 1stdibs.Com's three analysts currently expect revenues in 2024 to be US$85.7m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 31% to US$0.39. Before this earnings announcement, the analysts had been modelling revenues of US$80.0m and losses of US$0.47 per share in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a notable improvement in loss per share in particular.
The consensus price target rose 20% to US$6.00, with the analysts encouraged by the higher revenue and lower forecast losses for next year.
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. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2024. That would be a definite improvement, given that the past three years have seen revenue shrink 1.4% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 11% per year. So it's pretty clear that, although revenues are improving, 1stdibs.Com is still expected to grow slower than the industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on 1stdibs.Com. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple 1stdibs.Com analysts - going out to 2026, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 1 warning sign for 1stdibs.Com that you should be aware of.
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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.
