Auddia Inc. (NASDAQ:AUUD): Are Analysts Optimistic?
With the business potentially at an important milestone, we thought we'd take a closer look at Auddia Inc.'s (NASDAQ:AUUD) future prospects. Auddia Inc., a technology company, develops software products for the audio and podcast markets. On 31 December 2021, the US$25m market-cap company posted a loss of US$13m for its most recent financial year. The most pressing concern for investors is Auddia's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
Check out our latest analysis for Auddia
According to some industry analysts covering Auddia, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$10m in 2024. 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 102% 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.
Given this is a high-level overview, we won’t go into details of Auddia's upcoming projects, though, bear in mind that by and large 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. Auddia currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of 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.
Next Steps:
There are too many aspects of Auddia to cover in one brief article, but the key fundamentals for the company can all be found in one place – Auddia's company page on Simply Wall St. We've also put together a list of relevant aspects you should further examine:
Historical Track Record: What has Auddia'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 Auddia'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.
