When Can We Expect A Profit From Kubient, Inc. (NASDAQ:KBNT)?

Kubient, Inc. (NASDAQ:KBNT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Kubient, Inc. develops a cloud-based software platform for digital advertising industry. With the latest financial year loss of US$4.1m and a trailing-twelve-month loss of US$8.6m, the US$93m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which Kubient 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 Kubient

Kubient is bordering on breakeven, according to some American Interactive Media and Services analysts. They expect the company to post a final loss in 2021, before turning a profit of US$4.0m in 2022. The company is therefore projected to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 91% 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.

We're not going to go through company-specific developments for Kubient given that this is a high-level summary, though, keep in mind that by and large 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 prudently, with debt making up 5.7% 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:

This article is not intended to be a comprehensive analysis on Kubient, so if you are interested in understanding the company at a deeper level, take a look at Kubient's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:

1. Valuation: What is Kubient 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 Kubient 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 Kubient’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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