When Will Axonics, Inc. (NASDAQ:AXNX) Become Profitable?
With the business potentially at an important milestone, we thought we'd take a closer look at Axonics, Inc.'s (NASDAQ:AXNX) future prospects. Axonics, Inc., a medical technology company, engages in the development and commercialization of novel products for the treatment of bladder and bowel dysfunction. The US$2.9b market-cap company’s loss lessened since it announced a US$60m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$12m, as it approaches breakeven. The most pressing concern for investors is Axonics' path to profitability – when will it 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 Axonics
Consensus from 13 of the American Medical Equipment analysts is that Axonics is on the verge of breakeven. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$19m in 2024. So, the company is predicted to breakeven just over a year from now. 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 62%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Underlying developments driving Axonics' growth isn’t the focus of this broad overview, though, keep in mind 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 Axonics has no debt on its balance sheet, which is rare for a loss-making 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.
Next Steps:
This article is not intended to be a comprehensive analysis on Axonics, so if you are interested in understanding the company at a deeper level, take a look at Axonics' company page on Simply Wall St. We've also compiled a list of essential factors you should look at:
Valuation: What is Axonics 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 Axonics 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 Axonics’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.
