Analysts Are Optimistic We'll See A Profit From Sabio Holdings Inc. (CVE:SBIO)

Sabio Holdings Inc. (CVE:SBIO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Sabio Holdings Inc. operates as a technology provider in the advertising areas of connected TV (CTV) and over-the-top (OTT) streaming in the United States and the United Kingdom. On 31 December 2024, the CA$24m market-cap company posted a loss of US$111k for its most recent financial year. The most pressing concern for investors is Sabio Holdings' 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.

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According to the 3 industry analysts covering Sabio Holdings, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$1.4m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 106% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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

See our latest analysis for Sabio Holdings

One thing we would like to bring into light with Sabio Holdings is it 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 Sabio Holdings 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 Sabio Holdings, take a look at Sabio Holdings' company page on Simply Wall St. We've also compiled a list of key aspects you should further research:

1. Valuation: What is Sabio Holdings 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 Sabio Holdings 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 Sabio Holdings’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.