We Might See A Profit From Bridgeline Digital, Inc. (NASDAQ:BLIN) Soon
We feel now is a pretty good time to analyse Bridgeline Digital, Inc.'s (NASDAQ:BLIN) business as it appears the company may be on the cusp of a considerable accomplishment. Bridgeline Digital, Inc. operates as a digital engagement company in the United States. The US$14m market-cap company’s loss lessened since it announced a US$8.7m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$757k, as it approaches breakeven. The most pressing concern for investors is Bridgeline Digital's 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 Bridgeline Digital
Bridgeline Digital is bordering on breakeven, according to some American Software analysts. They expect the company to post a final loss in 2021, before turning a profit of US$2.2m in 2022. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of -61%,
We're not going to go through company-specific developments for Bridgeline Digital given that this is a high-level summary, but, bear in mind that generally periods of lower growth in the upcoming years is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 5.4% 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 Bridgeline Digital, so if you are interested in understanding the company at a deeper level, take a look at Bridgeline Digital'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 Bridgeline Digital'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 Bridgeline Digital'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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
