Loss-Making Viant Technology Inc. (NASDAQ:DSP) Set To Breakeven
We feel now is a pretty good time to analyse Viant Technology Inc.'s (NASDAQ:DSP) business as it appears the company may be on the cusp of a considerable accomplishment. Viant Technology Inc. operates as an advertising technology company. The US$577m market-cap company announced a latest loss of US$3.4m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is Viant Technology's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.
See our latest analysis for Viant Technology
Viant Technology is bordering on breakeven, according to the 6 American Software analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$1.2m in 2024. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 67% is expected, which is rather optimistic! 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 Viant Technology's upcoming projects, however, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we’d like to point out is that Viant Technology 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. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
Next Steps:
This article is not intended to be a comprehensive analysis on Viant Technology, so if you are interested in understanding the company at a deeper level, take a look at Viant Technology's company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:
Valuation: What is Viant Technology 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 Viant Technology 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 Viant Technology’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.
