Analysts Expect Breakeven For AvePoint, Inc. (NASDAQ:AVPT) Before Long

We feel now is a pretty good time to analyse AvePoint, Inc.'s (NASDAQ:AVPT) business as it appears the company may be on the cusp of a considerable accomplishment. AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, Middle East, Africa, and Asia Pacific. With the latest financial year loss of US$22m and a trailing-twelve-month loss of US$14m, the US$1.9b market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on AvePoint's investors mind, we've decided to gauge market sentiment. 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 AvePoint

Consensus from 7 of the American Software analysts is that AvePoint is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$461k in 2025. The company is therefore projected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 101%, 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 AvePoint's upcoming projects, though, take into account that generally 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. AvePoint 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 key fundamentals of AvePoint 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 AvePoint, take a look at AvePoint's company page on Simply Wall St. We've also compiled a list of essential aspects you should further examine:

1. Valuation: What is AvePoint 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 AvePoint 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 AvePoint’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.