Telaria Inc (NYSE:TLRA) Is Expected To Breakeven
Telaria Inc’s (NYSE:TLRA): Telaria, Inc., a software company, operates a programmatic, self-service, seller platform to monetize and manage premium video content across various Internet-connected screens and devices in the United States. The US$132m market-cap company’s loss lessens since it announced a -US$19.7m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$10.7m, as it approaches breakeven. As path to profitability is the topic on TLRA’s investors mind, I’ve decided to gauge market sentiment. I’ve put together a brief outline of industry analyst expectations for TLRA, its year of breakeven and its implied growth rate.
See our latest analysis for Telaria
According to the 4 industry analysts covering TLRA, the consensus is breakeven is near. They expect the company to post a final loss in 2019, before turning a profit of US$3.8m in 2020. So, TLRA is predicted to breakeven approximately 2 years from now. How fast will TLRA have to grow each year in order to reach the breakeven point by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 73% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving TLRA’s growth isn’t the focus of this broad overview, however, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
One thing I’d like to point out is that TLRA has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which usually has a high level of debt relative to its equity. This means that TLRA has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
Next Steps:
There are too many aspects of TLRA to cover in one brief article, but the key fundamentals for the company can all be found in one place – TLRA’s company page on Simply Wall St. I’ve also put together a list of essential factors you should further research:
Valuation: What is TLRA 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 TLRA 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 Telaria’s board and the CEO’s back ground.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
