When Can We Expect A Profit From Dubber Corporation Limited (ASX:DUB)?
We feel now is a pretty good time to analyse Dubber Corporation Limited's (ASX:DUB) business as it appears the company may be on the cusp of a considerable accomplishment. Dubber Corporation Limited operates a unified call recording platform in North America, Europe, and the Asia-Pacific. The AU$816m market-cap company’s loss lessened since it announced a AU$18m loss in the full financial year, compared to the latest trailing-twelve-month loss of AU$17m, as it approaches breakeven. The most pressing concern for investors is Dubber's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Dubber
Dubber is bordering on breakeven, according to some Australian Software analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of AU$3.0m in 2023. Therefore, the company is expected to breakeven roughly 2 years from today. 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 70%, 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 Dubber 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 prudently, with debt making up 1.1% 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.
Next Steps:
This article is not intended to be a comprehensive analysis on Dubber, so if you are interested in understanding the company at a deeper level, take a look at Dubber's company page on Simply Wall St. We've also compiled a list of important factors you should further research:
Historical Track Record: What has Dubber'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 Dubber'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.
This article by Simply Wall St is general in nature. 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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