When Will Daré Bioscience, Inc. (NASDAQ:DARE) Become Profitable?
Daré Bioscience, Inc. (NASDAQ:DARE) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Daré Bioscience, Inc., a clinical-stage biopharmaceutical company, engages in the identifying, developing, and marketing products for women’s health in the United States. With the latest financial year loss of US$31m and a trailing-twelve-month loss of US$41m, the US$32m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Daré Bioscience will turn a profit, with the big question being “when will the company 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 Daré Bioscience
According to the 3 industry analysts covering Daré Bioscience, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$41m in 2026. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 63% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Daré Bioscience given that this is a high-level summary, though, bear in mind that typically a pharma company has lumpy cash flows which are contingent on the drug and stage of product development the business is in. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
One thing we would like to bring into light with Daré Bioscience is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
There are too many aspects of Daré Bioscience to cover in one brief article, but the key fundamentals for the company can all be found in one place – Daré Bioscience's company page on Simply Wall St. We've also put together a list of pertinent aspects you should look at:
Historical Track Record: What has Daré Bioscience'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 Daré Bioscience'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.
