Yahoo Finance When Will Pointerra Limited (ASX:3DP) Turn A Profit?
Pointerra Limited (ASX:3DP) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Pointerra Limited provides a cloud-based solution for storing, processing, managing, analyzing, extracting, visualizing, and sharing 3D data. On 30 June 2023, the AU$30m market-cap company posted a loss of AU$4.5m for its most recent financial year. The most pressing concern for investors is Pointerra'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 Pointerra
According to some industry analysts covering Pointerra, breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of AU$5.6m 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 122% 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.
We're not going to go through company-specific developments for Pointerra given that this is a high-level summary, however, take into account that generally 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 issue worth mentioning. Pointerra currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.
Next Steps:
This article is not intended to be a comprehensive analysis on Pointerra, so if you are interested in understanding the company at a deeper level, take a look at Pointerra's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:
Valuation: What is Pointerra 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 Pointerra is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Pointerra’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.
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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.
