With the business potentially at an important milestone, we thought we'd take a closer look at Dolphin Entertainment, Inc.'s (NASDAQ:DLPN) future prospects. Dolphin Entertainment, Inc., together with its subsidiaries, operates as an independent entertainment marketing and premium content development company in the United States. The US$40m market-cap company’s loss lessened since it announced a US$6.5m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$2.7m, as it approaches breakeven. As path to profitability is the topic on Dolphin Entertainment's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Consensus from 2 of the American Entertainment analysts is that Dolphin Entertainment is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$2.4m in 2023. So, the company is predicted to breakeven just over a year 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 166% is expected, which is rather optimistic! 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 Dolphin Entertainment given that this is a high-level summary, but, 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 The company has managed its capital judiciously, with debt making up 19% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
There are too many aspects of Dolphin Entertainment to cover in one brief article, but the key fundamentals for the company can all be found in one place – Dolphin Entertainment's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:
Historical Track Record: What has Dolphin Entertainment'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 Dolphin Entertainment'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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