US$18.83: That's What Analysts Think EverCommerce Inc. (NASDAQ:EVCM) Is Worth After Its Latest Results

Last week, you might have seen that EverCommerce Inc. (NASDAQ:EVCM) released its full-year result to the market. The early response was not positive, with shares down 6.3% to US$12.56 in the past week. It was a respectable set of results; while revenues of US$490m were in line with analyst predictions, statutory losses were 12% smaller than expected, with EverCommerce losing US$0.82 per share. 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 EverCommerce

Taking into account the latest results, the consensus forecast from EverCommerce's eleven analysts is for revenues of US$622.3m in 2022, which would reflect a sizeable 27% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 73% to US$0.13. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$598.5m and losses of US$0.13 per share in 2022.

The consensus price target fell 17% to US$18.83as the analysts signal that ongoing losses are likely to weigh on the stock price. 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 EverCommerce analyst has a price target of US$26.00 per share, while the most pessimistic values it at US$14.00. 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.

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 pretty clear that there is an expectation that EverCommerce's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 27% growth on an annualised basis. This is compared to a historical growth rate of 45% over the past year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% annually. Even after the forecast slowdown in growth, it seems obvious that EverCommerce is also 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. Happily, they also upgraded their revenue estimates, and are forecasting revenues 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 EverCommerce going out to 2023, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for EverCommerce 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.