Tourn International AB (publ) (STO:TOURN) Could Be Less Than A Year Away From Profitability

With the business potentially at an important milestone, we thought we'd take a closer look at Tourn International AB (publ)'s (STO:TOURN) future prospects. Tourn International AB (publ) offers advertising services for brands and influencers. The kr112m market-cap company announced a latest loss of kr19m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on Tourn International'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.

Check out our latest analysis for Tourn International

According to some industry analysts covering Tourn International, breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of kr2.0m in 2024. Therefore, the company is expected to breakeven roughly a year from now or less! At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 99%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Tourn International's growth isn’t the focus of this broad overview, but, keep in mind that by and large 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. Tourn International currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

This article is not intended to be a comprehensive analysis on Tourn International, so if you are interested in understanding the company at a deeper level, take a look at Tourn International's company page on Simply Wall St. We've also compiled a list of relevant aspects you should further examine:

1. Valuation: What is Tourn International 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 Tourn International 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 Tourn International’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.