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Whispir Limited (ASX:WSP) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Whispir Limited develops and provides communications management systems through cloud-based platform in Australia, New Zealand, Asia, and North America. With the latest financial year loss of AU$9.7m and a trailing-twelve-month loss of AU$13m, the AU$132m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Whispir's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Consensus from 4 of the Australian Software analysts is that Whispir is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of AU$6.7m in 2025. The company is therefore projected to breakeven around 3 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 61% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Whispir's upcoming projects, 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.
One thing we’d like to point out is that Whispir has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
There are too many aspects of Whispir to cover in one brief article, but the key fundamentals for the company can all be found in one place – Whispir's company page on Simply Wall St. We've also put together a list of important aspects you should look at:
Historical Track Record: What has Whispir'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 Whispir'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.
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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