CurveBeam AI Limited (ASX:CVB) Is Expected To Breakeven In The Near Future

CurveBeam AI Limited (ASX:CVB) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. CurveBeam AI Limited provides medical imaging platforms and clinical assessment solutions that focus on the orthopedic market and general bone health screening and diagnostics. The AU$64m market-cap company announced a latest loss of AU$51m on 30 June 2023 for its most recent financial year result. The most pressing concern for investors is CurveBeam AI's path to profitability – when will it 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 CurveBeam AI

According to some industry analysts covering CurveBeam AI, breakeven is near. They expect the company to post a final loss in 2025, before turning a profit of AU$100k in 2026. Therefore, the company is expected to breakeven roughly 2 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 84% is expected, which is rather optimistic! 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 CurveBeam AI's upcoming projects, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with CurveBeam AI is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

There are too many aspects of CurveBeam AI to cover in one brief article, but the key fundamentals for the company can all be found in one place – CurveBeam AI's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:

1. Historical Track Record: What has CurveBeam AI'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on CurveBeam AI's board and the CEO’s background.
3. 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.