We Might See A Profit From FLITTO Inc. (KOSDAQ:300080) Soon

We feel now is a pretty good time to analyse FLITTO Inc.'s (KOSDAQ:300080) business as it appears the company may be on the cusp of a considerable accomplishment. Flitto Inc., an integrated platform and language data company, provides various translation services. The ₩80b market-cap company’s loss lessened since it announced a ₩6.8b loss in the full financial year, compared to the latest trailing-twelve-month loss of ₩4.3b, as it approaches breakeven. 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.

View our latest analysis for FLITTO

Expectations from some of the South Korean Software analysts is that FLITTO is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of ₩1.8b in 2024. The company is therefore projected to breakeven around a year 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 107% year-on-year, on average, which signals high confidence from analysts. 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, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital prudently, with debt making up 5.2% 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 key fundamentals of FLITTO 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 FLITTO, take a look at FLITTO's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:

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.