CrowdFundMe S.p.A.'s (BIT:CFM) Profit Outlook

We feel now is a pretty good time to analyse CrowdFundMe S.p.A.'s (BIT:CFM) business as it appears the company may be on the cusp of a considerable accomplishment. CrowdFundMe S.p.A. operates a crowdfunding portal for companies and investor to raise funding. The €3.8m market-cap company announced a latest loss of €902k on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on CrowdFundMe's investors mind, we've decided to gauge market sentiment. 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 CrowdFundMe

According to some industry analysts covering CrowdFundMe, breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of €81k in 2026. Therefore, the company is expected to breakeven roughly 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2026? Working backwards from analyst estimates, it turns out that they expect the company to grow 86% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving CrowdFundMe's growth isn’t the focus of this broad overview, though, keep in mind that generally 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 aspect worth mentioning. The company has managed its capital prudently, with debt making up 2.9% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of CrowdFundMe to cover in one brief article, but the key fundamentals for the company can all be found in one place – CrowdFundMe's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

1. Valuation: What is CrowdFundMe 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 CrowdFundMe 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 CrowdFundMe’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com