Breakeven Is Near for FLITTO Inc. (KOSDAQ:300080)

With the business potentially at an important milestone, we thought we'd take a closer look at FLITTO Inc.'s (KOSDAQ:300080) future prospects. Flitto Inc., an integrated platform and language data company, provides various translation services. On 31 December 2023, the ₩150b market-cap company posted a loss of ₩6.8b for its most recent financial year. Many investors are wondering about the rate at which FLITTO will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for FLITTO

According to some industry analysts covering FLITTO, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of ₩3.6b in 2024. Therefore, the company is expected to breakeven roughly a year 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 120% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving FLITTO's growth isn’t the focus of this broad overview, though, take into account that by and large 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 FLITTO is its debt-to-equity ratio of 151%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk around investing in the loss-making company.

Next Steps:

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

1. Valuation: What is FLITTO 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 FLITTO 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 FLITTO’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.