Dubber Corporation Limited (ASX:DUB): Is Breakeven Near?

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 unified call recording platform in North America, Europe, and the Asia-Pacific. The AU$414m market-cap company announced a latest loss of AU$18m on 30 June 2020 for its most recent financial year result. As path to profitability is the topic on Dubber's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Dubber

Dubber is bordering on breakeven, according to some Australian Software analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of AU$3.1m in 2023. The company is therefore projected to breakeven around 3 years 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 69%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Dubber's growth isn’t the focus of this broad overview, but, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that Dubber has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, 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 key fundamentals of Dubber which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Dubber, take a look at Dubber's company page on Simply Wall St. We've also put together a list of relevant factors you should further research:

1. 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.
2. 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.
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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