There's been a notable change in appetite for Roadzen, Inc. (NASDAQ:RDZN) shares in the week since its quarterly report, with the stock down 12% to US$0.80. It was a moderately negative result overall - revenue fell 6.1% short of analyst estimates at US$12m, although at least statutory losses were marginally smaller than expected, at US$0.32 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Roadzen

Taking into account the latest results, the consensus forecast from Roadzen's two analysts is for revenues of US$60.4m in 2025. This reflects a sizeable 30% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 45% to US$1.08. Before this latest report, the consensus had been expecting revenues of US$73.2m and US$1.20 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.

The analysts have cut their price target 23% to US$5.00per share, suggesting that the declining revenue was a more crucial indicator than the forecast reduction in losses.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Roadzen'shistorical trends, as the 69% annualised revenue growth to the end of 2025 is roughly in line with the 58% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 12% per year. So it's pretty clear that Roadzen is forecast to grow substantially faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. They also downgraded Roadzen's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Roadzen's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Roadzen. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 5 warning signs for Roadzen (3 make us uncomfortable) 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.