Yahoo Finance Loss-Making Oblong Inc. (NASDAQ:OBLG) Expected To Breakeven In The Medium-Term
We feel now is a pretty good time to analyse Oblong Inc.'s (NASDAQ:OBLG) business as it appears the company may be on the cusp of a considerable accomplishment. Oblong, Inc. provides multi-stream collaboration technologies and managed services for video collaboration and network applications in the United States and internationally. On 31 December 2020, the US$121m market-cap company posted a loss of US$8.2m for its most recent financial year. The most pressing concern for investors is Oblong's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
View our latest analysis for Oblong
According to some industry analysts covering Oblong, breakeven is near. They expect the company to post a final loss in 2022, before turning a profit of US$8.3m in 2023. Therefore, the company is expected to breakeven roughly 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 77%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Oblong's growth isn’t the focus of this broad overview, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 11% 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:
This article is not intended to be a comprehensive analysis on Oblong, so if you are interested in understanding the company at a deeper level, take a look at Oblong's company page on Simply Wall St. We've also put together a list of key factors you should look at:
Historical Track Record: What has Oblong's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Oblong's board and the CEO’s background.
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.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
