When Will GetNinjas S.A. (BVMF:NINJ3) Become Profitable?

GetNinjas S.A. (BVMF:NINJ3) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. GetNinjas S.A. operates an online platform that connects professionals with seeking quotes and hire services in Brazil. The R$203m market-cap company’s loss lessened since it announced a R$16m loss in the full financial year, compared to the latest trailing-twelve-month loss of R$4.0m, as it approaches breakeven. The most pressing concern for investors is GetNinjas' 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 GetNinjas

GetNinjas is bordering on breakeven, according to the 2 Brazilian Consumer Services analysts. They expect the company to post a final loss in 2024, before turning a profit of R$10m in 2025. So, the company is predicted to breakeven approximately 2 years 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 115% year-on-year, on average, 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 GetNinjas' growth isn’t the focus of this broad overview, however, bear in mind that typically 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. GetNinjas currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on GetNinjas, so if you are interested in understanding the company at a deeper level, take a look at GetNinjas' company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

1. Valuation: What is GetNinjas 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 GetNinjas 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 GetNinjas’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.