Market Sentiment Around Loss-Making CuriosityStream Inc. (NASDAQ:CURI)

We feel now is a pretty good time to analyse CuriosityStream Inc.'s (NASDAQ:CURI) business as it appears the company may be on the cusp of a considerable accomplishment. CuriosityStream Inc. operates as a factual streaming service and media company. The US$812m market-cap company announced a latest loss of US$52m on 31 December 2020 for its most recent financial year result. Many investors are wondering about the rate at which CuriosityStream 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 CuriosityStream

Consensus from 7 of the American Entertainment analysts is that CuriosityStream is on the verge of breakeven. They anticipate the company to incur a final loss in 2022, before generating positive profits of US$2.5m in 2023. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 66% year-on-year, on average, 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 CuriosityStream 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 aspect worth mentioning. CuriosityStream 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:

There are too many aspects of CuriosityStream to cover in one brief article, but the key fundamentals for the company can all be found in one place – CuriosityStream's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further examine:

1. Valuation: What is CuriosityStream 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 CuriosityStream 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 CuriosityStream’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. 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.
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