When Will Bambuser AB (publ) (STO:BUSER) Turn A Profit?

Bambuser AB (publ) (STO:BUSER) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bambuser AB (publ) develops and provides solutions for live streaming in Sweden. The company’s loss has recently broadened since it announced a kr20m loss in the full financial year, compared to the latest trailing-twelve-month loss of kr28m, moving it further away from breakeven. As path to profitability is the topic on Bambuser's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Bambuser

Bambuser is bordering on breakeven, according to some Swedish Interactive Media and Services analysts. They anticipate the company to incur a final loss in 2022, before generating positive profits of kr44m in 2023. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 54% 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 Bambuser's growth isn’t the focus of this broad overview, but, take into account that by and large 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. Bambuser currently has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Bambuser 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 Bambuser, take a look at Bambuser's company page on Simply Wall St. We've also compiled a list of essential aspects you should further research:

1. Historical Track Record: What has Bambuser's 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 Bambuser'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. 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.
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