Analysts Expect Breakeven For Genius Sports Limited (NYSE:GENI) Before Long

We feel now is a pretty good time to analyse Genius Sports Limited's (NYSE:GENI) business as it appears the company may be on the cusp of a considerable accomplishment. Genius Sports Limited develops and sells technology-led products and services to the sports, sports betting, and sports media industries. The US$1.1b market-cap company’s loss lessened since it announced a US$182m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$175m, as it approaches breakeven. Many investors are wondering about the rate at which Genius Sports will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Genius Sports

Consensus from 10 of the American Hospitality analysts is that Genius Sports is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$11m in 2025. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 92% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth

Underlying developments driving Genius Sports' growth isn’t the focus of this broad overview, but, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 1.3% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Genius Sports which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Genius Sports, take a look at Genius Sports' company page on Simply Wall St. We've also put together a list of key factors you should further examine:

1. Valuation: What is Genius Sports worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Genius Sports is currently mispriced by the market.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Genius Sports’s board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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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.