Sabio Holdings Inc. (CVE:SBIO) About To Shift From Loss To Profit

We feel now is a pretty good time to analyse Sabio Holdings Inc.'s (CVE:SBIO) business as it appears the company may be on the cusp of a considerable accomplishment. 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. The CA$22m market-cap company’s loss lessened since it announced a US$4.8m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$2.7m, as it approaches breakeven. Many investors are wondering about the rate at which Sabio Holdings will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Sabio Holdings

Sabio Holdings is bordering on breakeven, according to the 3 Canadian Media analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$1.6m in 2024. The company is therefore projected to breakeven around 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 123% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Sabio Holdings given that this is a high-level summary, but, keep in mind that typically 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 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 essential factors you should further examine:

1. Historical Track Record: What has Sabio Holdings' performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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' 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.