Infracommerce CXaaS S.A. (BVMF:IFCM3) Is About To Turn The Corner

With the business potentially at an important milestone, we thought we'd take a closer look at Infracommerce CXaaS S.A.'s (BVMF:IFCM3) future prospects. Infracommerce CXaaS S.A. provides digital solutions for various brands and industries in Brazil, Mexico, Colombia, Peru, Chile, Argentina, Uruguay, and Latin America. The company’s loss has recently broadened since it announced a R$295m loss in the full financial year, compared to the latest trailing-twelve-month loss of R$1.8b, moving it further away from breakeven. The most pressing concern for investors is Infracommerce CXaaS' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Infracommerce CXaaS

According to the 2 industry analysts covering Infracommerce CXaaS, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of R$15m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 136%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Infracommerce CXaaS' growth isn’t the focus of this broad overview, though, 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 would like to bring into light with Infracommerce CXaaS 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. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of Infracommerce CXaaS 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 Infracommerce CXaaS, take a look at Infracommerce CXaaS' company page on Simply Wall St. We've also put together a list of important aspects you should further research:

1. Valuation: What is Infracommerce CXaaS 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 Infracommerce CXaaS 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 Infracommerce CXaaS’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.