iClick Interactive Asia Group Limited (NASDAQ:ICLK) Is Expected To Breakeven

iClick Interactive Asia Group Limited’s (NASDAQ:ICLK): iClick Interactive Asia Group Limited, together with its subsidiaries, provides online marketing services in the People’s Republic of China, Hong Kong, and internationally. The US$209m market-cap company announced a latest loss of -US$32.4m on 31 December 2018 for its most recent financial year result. Many investors are wondering the rate at which ICLK will turn a profit, with the big question being “when will the company breakeven?” I’ve put together a brief outline of industry analyst expectations for ICLK, its year of breakeven and its implied growth rate.

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View our latest analysis for iClick Interactive Asia Group

Consensus from the 2 Media analysts is ICLK is on the verge of breakeven. They expect the company to post a final loss in 2019, before turning a profit of US$28m in 2020. So, ICLK is predicted to breakeven approximately a couple of months from now! How fast will ICLK have to grow each year in order to reach the breakeven point by 2020? Working backwards from analyst estimates, it turns out that they expect the company to grow 99% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

NasdaqGM:ICLK Past and Future Earnings, May 24th 2019
NasdaqGM:ICLK Past and Future Earnings, May 24th 2019

Underlying developments driving ICLK’s growth isn’t the focus of this broad overview, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing I would like to bring into light with ICLK is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in ICLK’s case is 42%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of ICLK to cover in one brief article, but the key fundamentals for the company can all be found in one place – ICLK’s company page on Simply Wall St. I’ve also put together a list of important aspects you should look at:

  1. Historical Track Record: What has ICLK’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 iClick Interactive Asia Group’s board and the CEO’s back ground.
  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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.