Earnings Release: Here's Why Analysts Cut Their Urgent.ly Inc. (NASDAQ:ULY) Price Target To US$11.50

Urgent.ly Inc. (NASDAQ:ULY) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Revenues of US$32m beat expectations by a respectable 2.2%, although statutory losses per share increased. Urgent.ly lost US$4.50, which was 67% more than what the analysts had included in their models. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus, from the two analysts covering Urgent.ly, is for revenues of US$127.5m in 2025. This implies a noticeable 2.8% reduction in Urgent.ly's revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 38% to US$13.53. Before this latest report, the consensus had been expecting revenues of US$127.5m and US$11.46 per share in losses. So it's pretty clear the analysts have mixed opinions on Urgent.ly even after this update; although they reconfirmed their revenue numbers, it came at the cost of a notable increase in per-share losses.

Check out our latest analysis for Urgent.ly

With the increase in forecast losses for next year, it's perhaps no surprise to see that the average price target dipped 15% to US$11.50, with the analysts signalling that growing losses would be a definite concern.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Urgent.ly's past performance and to peers in the same industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate over the period ending 2025 compared to the historical decline of 21% per annum over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 13% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Urgent.ly to suffer worse 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 Urgent.ly. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on Urgent.ly. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Urgent.ly going out as far as 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 4 warning signs for Urgent.ly (3 are a bit concerning!) 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.