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Cardlytics, Inc. (NASDAQ:CDLX) investors will be delighted, with the company turning in some strong numbers with its latest results. Revenues and losses per share were both better than expected, with revenues of US$62m leading estimates by 6.7%. Statutory losses were smaller than the analystsexpected, coming in at US$0.26 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
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Following last week's earnings report, Cardlytics' six analysts are forecasting 2025 revenues to be US$270.5m, approximately in line with the last 12 months. Losses are predicted to fall substantially, shrinking 68% to US$1.09. Before this earnings announcement, the analysts had been modelling revenues of US$272.8m and losses of US$1.43 per share in 2025. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading their numbers and making a very favorable reduction to losses per share in particular.
Check out our latest analysis for Cardlytics
Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 12% to US$2.54. It looks likethe analysts have become less optimistic about the overall business. 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. There are some variant perceptions on Cardlytics, with the most bullish analyst valuing it at US$3.00 and the most bearish at US$2.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.0% by the end of 2025. This indicates a significant reduction from annual growth of 8.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.5% per year. It's pretty clear that Cardlytics' revenues are expected to perform substantially worse than the wider industry.