When Will Infracommerce CXaaS S.A. (BVMF:IFCM3) Turn A Profit?

Infracommerce CXaaS S.A. (BVMF:IFCM3) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Infracommerce CXaaS S.A. provides digital solutions for various brands and industries in Brazil, Mexico, Colombia, Peru, Chile, Argentina, Uruguay, and Latin America. With the latest financial year loss of R$295m and a trailing-twelve-month loss of R$305m, the R$357m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Infracommerce CXaaS' path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Infracommerce CXaaS

According to the 4 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$32m in 2025. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 106% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Infracommerce CXaaS' upcoming projects, however, take into account that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Infracommerce CXaaS is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Infracommerce CXaaS' case is 44%. A higher level of debt requires more stringent capital management which increases the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Infracommerce CXaaS, so if you are interested in understanding the company at a deeper level, take a look at Infracommerce CXaaS' company page on Simply Wall St. We've also put together a list of key 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.