17LIVE Group Limited (SGX:LVR) Has Found A Path To Profitability

We feel now is a pretty good time to analyse 17LIVE Group Limited's (SGX:LVR) business as it appears the company may be on the cusp of a considerable accomplishment. 17LIVE Group Limited operates live streaming platform. The S$166m market-cap company posted a loss in its most recent financial year of US$248m and a latest trailing-twelve-month loss of US$128m shrinking the gap between loss and breakeven. The most pressing concern for investors is 17LIVE Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for 17LIVE Group

According to some industry analysts covering 17LIVE Group, breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$9.5m in 2024. So, the company is predicted to breakeven approximately 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 161%, 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 17LIVE Group's upcoming projects, though, take into account 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 aspect worth mentioning. 17LIVE Group currently has no debt on its balance sheet, which is rare for a loss-making 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 17LIVE Group, so if you are interested in understanding the company at a deeper level, take a look at 17LIVE Group's company page on Simply Wall St. We've also compiled a list of essential factors you should further research:

1. Historical Track Record: What has 17LIVE Group'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 17LIVE Group'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.