Wyld Networks AB (publ) (STO:WYLD): Is Breakeven Near?

With the business potentially at an important milestone, we thought we'd take a closer look at Wyld Networks AB (publ)'s (STO:WYLD) future prospects. Wyld Networks AB (publ), together with its subsidiaries, operates as a virtual satellite network operator that develops and delivers wireless technology solutions in Sweden and internationally. With the latest financial year loss of kr39m and a trailing-twelve-month loss of kr42m, the kr161m market-cap company amplified its loss by moving further away from its breakeven target. As path to profitability is the topic on Wyld Networks' 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.

See our latest analysis for Wyld Networks

According to some industry analysts covering Wyld Networks, breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of kr11m in 2025. Therefore, the company is expected to breakeven roughly 2 years from now. 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 96% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Given this is a high-level overview, we won’t go into details of Wyld Networks' upcoming projects, but, keep in mind that typically 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. The company has managed its capital judiciously, with debt making up 23% 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 too many aspects of Wyld Networks to cover in one brief article, but the key fundamentals for the company can all be found in one place – Wyld Networks' company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Historical Track Record: What has Wyld Networks' 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 Wyld Networks' 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.