When Will Pointerra Limited (ASX:3DP) Breakeven?

Pointerra Limited (ASX:3DP) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Pointerra Limited develops and commercializes an end-to-end data as a service solution for managing, visualizing, working in, analyzing, and sharing 3D datasets in the United States, Australia, and internationally. The AU$355m market-cap company announced a latest loss of AU$2.5m on 30 June 2020 for its most recent financial year result. The most pressing concern for investors is Pointerra's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Pointerra

According to some industry analysts covering Pointerra, breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$5.7m in 2022. 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 58% 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.

Underlying developments driving Pointerra's growth isn’t the focus of this broad overview, though, take into account 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. Pointerra currently has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which usually has a high level of 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 compiled a list of relevant factors you should further research:

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. 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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