Pointerra Limited's (ASX:3DP) Profit Outlook

With the business potentially at an important milestone, we thought we'd take a closer look at Pointerra Limited's (ASX:3DP) future prospects. Pointerra Limited provides a cloud-based solution for storing, processing, managing, analyzing, extracting, visualizing, and sharing 3D data in Australia and the United States. The AU$36m market-cap company posted a loss in its most recent financial year of AU$5.2m and a latest trailing-twelve-month loss of AU$6.8k shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which Pointerra 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.

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Expectations from some of the Australian Software analysts is that Pointerra is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of AU$6.6m in 2026. The company is therefore projected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 159%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Pointerra given that this is a high-level summary, 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.

See our latest analysis for Pointerra

One thing we’d like to point out is that Pointerra has no debt on its balance sheet, which is quite unusual for a cash-burning 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.

Next Steps:

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

1. Valuation: What is Pointerra 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 Pointerra is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Pointerra’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.