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Innovid Corp. Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

·3-min read

Shareholders of Innovid Corp. (NYSE:CTV) will be pleased this week, given that the stock price is up 14% to US$3.35 following its latest quarterly results. Although revenues of US$33m were in line with analyst expectations, Innovid surprised on the earnings front, with an unexpected (statutory) profit of US$0.03 per share a nice improvement on the losses that the analystsforecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Innovid

earnings-and-revenue-growth
earnings-and-revenue-growth

Following the latest results, Innovid's three analysts are now forecasting revenues of US$130.3m in 2022. This would be a huge 20% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 69% to US$0.10. Before this latest report, the consensus had been expecting revenues of US$134.9m and US$0.11 per share in losses. 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.

The consensus price target fell 19% to US$5.67, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Innovid, with the most bullish analyst valuing it at US$6.00 and the most bearish at US$5.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Innovid's rate of growth is expected to accelerate meaningfully, with the forecast 45% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 31% over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Innovid is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also downgraded their revenue estimates, although industry data suggests that Innovid's revenues are expected to grow faster than the wider industry. Even so, long term profitability is more important for the value creation process. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Innovid's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Innovid going out to 2023, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Innovid that you should be aware of.

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.

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