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With the business potentially at an important milestone, we thought we'd take a closer look at Whispir Limited's (ASX:WSP) future prospects. Whispir Limited develops and provides communications management systems through cloud-based platform in the Americas, Australia, New Zealand, Singapore, Switzerland, and internationally. With the latest financial year loss of AU$9.9m and a trailing-twelve-month loss of AU$7.3m, the AU$299m market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which Whispir will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
According to the 5 industry analysts covering Whispir, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$8.0m in 2024. Therefore, the company is expected to breakeven roughly 3 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 53% is expected, which signals high confidence from analysts. 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 Whispir's upcoming projects, however, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
Before we wrap up, there’s one aspect worth mentioning. Whispir currently 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.
There are too many aspects of Whispir to cover in one brief article, but the key fundamentals for the company can all be found in one place – Whispir's company page on Simply Wall St. We've also compiled a list of relevant factors you should further research:
Historical Track Record: What has Whispir'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 Whispir'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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