We Might See A Profit From Flywire Corporation (NASDAQ:FLYW) Soon

Flywire Corporation (NASDAQ:FLYW) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. With the latest financial year loss of US$8.6m and a trailing-twelve-month loss of US$11m, the US$2.3b market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is Flywire's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Flywire

Flywire is bordering on breakeven, according to the 18 American Diversified Financial analysts. They expect the company to post a final loss in 2023, before turning a profit of US$3.1m in 2024. The company is therefore projected to breakeven around 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 97%, 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 Flywire's upcoming projects, though, take into account that by and large 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 Flywire has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are key fundamentals of Flywire which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Flywire, take a look at Flywire's company page on Simply Wall St. We've also put together a list of key aspects you should further examine:

1. Valuation: What is Flywire 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 Flywire 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 Flywire’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.

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

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