Analysts Expect Breakeven For Artificial Solutions International AB (publ) (STO:ASAI) Before Long

With the business potentially at an important milestone, we thought we'd take a closer look at Artificial Solutions International AB (publ)'s (STO:ASAI) future prospects. Artificial Solutions International AB (publ), an AI platform, provides Al-powered and automated conversations solutions in Europe, the United States, and internationally. With the latest financial year loss of kr58m and a trailing-twelve-month loss of kr73m, the kr153m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Artificial Solutions International 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.

Check out our latest analysis for Artificial Solutions International

Consensus from 3 of the Swedish Software analysts is that Artificial Solutions International is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of kr2.9m in 2026. The company is therefore projected to breakeven around 2 years from today. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 67%, 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.

We're not going to go through company-specific developments for Artificial Solutions International given that this is a high-level summary, though, keep in mind that typically 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 issue worth mentioning. Artificial Solutions International currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

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

1. Valuation: What is Artificial Solutions 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 Artificial Solutions 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 Artificial Solutions 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com