Urgent.ly Inc. (NASDAQ:ULY) Just Reported And Analysts Have Been Cutting Their Estimates

One of the biggest stories of last week was how Urgent.ly Inc. (NASDAQ:ULY) shares plunged 49% in the week since its latest yearly results, closing yesterday at US$0.29. Revenues came in at US$143m, in line with expectations, while statutory losses per share were substantially higher than expected, at US$3.28 per share. The analyst 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Urgent.ly after the latest results.

See our latest analysis for Urgent.ly

After the latest results, the consensus from Urgent.ly's single analyst is for revenues of US$137.6m in 2025, which would reflect a noticeable 3.7% decline in revenue compared to the last year of performance. Losses are predicted to fall substantially, shrinking 79% to US$0.67. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$148.4m and losses of US$0.53 per share in 2025. While this year's revenue estimates dropped there was also a regrettable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

The consensus price target fell 33% to US$1.00, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

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. We would also point out that the forecast 3.7% annualised revenue decline to the end of 2025 is roughly in line with the historical trend, which saw revenues shrink 3.4% annually over the past three years By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 12% per year. So it's pretty clear that, while it does have declining revenues, the analyst also expect Urgent.ly to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Urgent.ly's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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 3 warning signs for Urgent.ly 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.