Moovly Media Inc.'s (CVE:MVY) Path To Profitability

With the business potentially at an important milestone, we thought we'd take a closer look at Moovly Media Inc.'s (CVE:MVY) future prospects. Moovly Media Inc. develops cloud-based digital media and content creation platform in Canada and Belgium. The CA$59m market-cap company’s loss lessened since it announced a CA$1.7m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$1.6m, as it approaches breakeven. The most pressing concern for investors is Moovly Media's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Moovly Media

Expectations from some of the Canadian Interactive Media and Services analysts is that Moovly Media is on the verge of breakeven. They anticipate the company to incur a final loss in 2021, before generating positive profits of CA$4.5m in 2022. So, the company is predicted to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 163% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Moovly Media's upcoming projects, but, 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 issue worth mentioning. Moovly Media currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

There are key fundamentals of Moovly Media 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 Moovly Media, take a look at Moovly Media's company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Valuation: What is Moovly Media 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 Moovly Media 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 Moovly Media’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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