Eventbrite, Inc. (NYSE:EB) Just Reported And Analysts Have Been Cutting Their Estimates
Shareholders in Eventbrite, Inc. (NYSE:EB) had a terrible week, as shares crashed 31% to US$5.60 in the week since its latest yearly results. Revenue hit US$326m in line with forecasts, although the company reported a statutory loss per share of US$0.26 that was somewhat smaller than the analysts expected. 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.
Check out our latest analysis for Eventbrite
Taking into account the latest results, the consensus forecast from Eventbrite's seven analysts is for revenues of US$375.1m in 2024. This reflects a notable 15% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 34% to US$0.17. Before this earnings announcement, the analysts had been modelling revenues of US$399.5m and losses of US$0.053 per share in 2024. So it's pretty clear the analysts have mixed opinions on Eventbrite after this update; revenues were downgraded and per-share losses expected to increase.
The consensus price target fell 20% to US$10.14, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Eventbrite analyst has a price target of US$13.00 per share, while the most pessimistic values it at US$7.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. 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 15% annualised growth until the end of 2024. If achieved, this would be a much better result than the 0.3% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.8% per year. 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 important thing to note is the forecast of increased losses next year, suggesting all may not be well at Eventbrite. They also downgraded Eventbrite's revenue estimates, but industry data suggests that it is 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Eventbrite 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 2 warning signs for Eventbrite that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
