With the business potentially at an important milestone, we thought we'd take a closer look at Dubber Corporation Limited's (ASX:DUB) future prospects. Dubber Corporation Limited operates a cloud based unified call recording and audio asset management platform in Europe, the Americas, and internationally. With the latest financial year loss of AU$32m and a trailing-twelve-month loss of AU$55m, the AU$224m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Dubber will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Dubber

According to some industry analysts covering Dubber, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of AU$4.3m in 2024. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 77% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict. earnings-per-share-growth

Underlying developments driving Dubber's growth isn’t the focus of this broad overview, however, take into account that generally a high growth rate 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. Dubber 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. This means that the company 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:

This article is not intended to be a comprehensive analysis on Dubber, so if you are interested in understanding the company at a deeper level, take a look at Dubber's company page on Simply Wall St. We've also put together a list of key factors you should further research:

Historical Track Record: What has Dubber'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 Dubber'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.