Quotient Technology Inc. (NYSE:QUOT): When Will It Breakeven?
With the business potentially at an important milestone, we thought we'd take a closer look at Quotient Technology Inc.'s (NYSE:QUOT) future prospects. Quotient Technology Inc. operates as a digital media and promotions technology company that offers power integrated digital media and promotions programs for brands and retailers. With the latest financial year loss of US$46m and a trailing-twelve-month loss of US$58m, the US$400m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Quotient Technology's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Check out our latest analysis for Quotient Technology
Quotient Technology is bordering on breakeven, according to the 2 American Online Retail analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$3.4m in 2023. The company is therefore projected to breakeven just over a year 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 100%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Quotient Technology's upcoming projects, though, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing we would like to bring into light with Quotient Technology is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in Quotient Technology's case is 98%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of Quotient Technology to cover in one brief article, but the key fundamentals for the company can all be found in one place – Quotient Technology's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:
Historical Track Record: What has Quotient Technology'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 Quotient 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.
