Loss-Making Nodebis Applications AB (publ) (NGM:NODE) Set To Breakeven

We feel now is a pretty good time to analyse Nodebis Applications AB (publ)'s (NGM:NODE) business as it appears the company may be on the cusp of a considerable accomplishment. Nodebis Applications AB (publ) provides digital support services in Sweden and the Nordic region. The kr92m market-cap company announced a latest loss of kr2.4m on 31 December 2023 for its most recent financial year result. As path to profitability is the topic on Nodebis Applications' 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 Nodebis Applications

Expectations from some of the Swedish IT analysts is that Nodebis Applications is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of kr4.0m in 2024. So, the company is predicted to breakeven approximately 12 months 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 36%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won’t go into details of Nodebis Applications' upcoming projects, but, keep in mind that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that Nodebis Applications 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:

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

1. Valuation: What is Nodebis Applications 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 Nodebis Applications 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 Nodebis Applications’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.