LiveHire Limited (ASX:LVH): When Will It Breakeven?

We feel now is a pretty good time to analyse LiveHire Limited's (ASX:LVH) business as it appears the company may be on the cusp of a considerable accomplishment. LiveHire Limited provides online talent acquisition software solutions to enterprises in Australia, New Zealand, and North America. On 30 June 2023, the AU$17m market-cap company posted a loss of AU$14m for its most recent financial year. The most pressing concern for investors is LiveHire's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for LiveHire

LiveHire is bordering on breakeven, according to some Australian Software analysts. They expect the company to post a final loss in 2025, before turning a profit of AU$1.7m in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. 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 88%, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving LiveHire's growth isn’t the focus of this broad overview, though, bear in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 2.3% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is LiveHire 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 LiveHire 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 LiveHire’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.