Cvent Holding Corp. (NASDAQ:CVT) Released Earnings Last Week And Analysts Lifted Their Price Target To US$8.25

Last week saw the newest second-quarter earnings release from Cvent Holding Corp. (NASDAQ:CVT), an important milestone in the company's journey to build a stronger business. It looks like a positive result overall, with revenues of US$161m beating forecasts by 4.7%. Statutory losses of US$0.07 per share were roughly in line with what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cvent Holding after the latest results.

View our latest analysis for Cvent Holding

Taking into account the latest results, the consensus forecast from Cvent Holding's five analysts is for revenues of US$623.7m in 2022, which would reflect a solid 8.1% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 21% to US$0.18. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$621.3m and losses of US$0.19 per share in 2022. 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.

These new estimates led to the consensus price target rising 8.2% to US$8.25, with lower forecast losses suggesting things could be looking up for Cvent Holding. 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. The most optimistic Cvent Holding analyst has a price target of US$11.00 per share, while the most pessimistic values it at US$5.50. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cvent Holding's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Cvent Holding'shistorical trends, as the 17% annualised revenue growth to the end of 2022 is roughly in line with the 17% annual revenue growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 13% annually. So although Cvent Holding is expected to maintain its revenue growth rate, it's definitely expected 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. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster 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.

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. We have estimates - from multiple Cvent Holding analysts - going out to 2024, and you can see them free on our platform here.

Even so, be aware that Cvent Holding is showing 3 warning signs in our investment analysis , and 1 of those is potentially serious...

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.