Market sentiment around Audia Inc. (NASDAQ:AUUD)
Audidia Inc. (NASDAQ:AUUD) may be approaching a major achievement in his company, so we’d like to shed some light on the company. Audidia Inc., a technology company, develops software products for the audio and podcast markets. On Dec. 31, 2021, the $22 million market cap company posted a loss of $13 million for its most recent fiscal year. The most pressing concern for investors is Audidia’s path to profitability – when will it break even? In this article, we’ll discuss the company’s growth expectations and when analysts expect it to become profitable.
See our latest analysis for Audia
Auddia is close to breaking even, according to some American Software analysts. They expect the business to make a terminal loss in 2023, before making a profit of US$10 million in 2024. Thus, the business is expected to break even in about 2 years from today. How fast will the business need to grow year over year to break even by that date? Using a line of best fit, we calculated an average annual growth rate of 102%, which is quite optimistic! If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
Developments underlying Audidia’s growth are not the focus of this general overview, however, consider that overall a high growth rate is not unusual, particularly when a company is in a period of investment.
Before concluding, there is one aspect worth mentioning. Auddia currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt to equity ratios. This means that the company has operated solely on its equity investment and has no debt. This aspect reduces the risk associated with investing in the loss-making company.
There are fundamentals of Audidia that are not covered in this article, but we must re-emphasize that this is just a basic overview. For a more comprehensive overview of Audia, check out Audidia’s corporate page on Simply Wall St. We’ve also compiled a list of key aspects you should dig deeper into:
- Historical review: How has Audidia performed in the past? Go deeper into the analysis of past history and take a look at the free visual representations of our analysis for clarity.
- Management team: An experienced management team at the helm boosts our confidence in the company – take a look at who sits on Audidia’s board and the CEO’s background.
- Other High Performing Stocks: Are there other stocks that offer better prospects with a proven track record? Explore our free list of these great stocks here.
Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.