When Will Iveda Solutions, Inc. (NASDAQ:IVDA) Turn A Profit?

Iveda Solutions, Inc. (NASDAQ:IVDA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Iveda Solutions, Inc. provides artificial intelligence (AI) and digital transformation technologies in the United States and Taiwan. The US$4.9m market-cap company posted a loss in its most recent financial year of US$3.2m and a latest trailing-twelve-month loss of US$3.5m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Iveda Solutions' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Iveda Solutions

Iveda Solutions is bordering on breakeven, according to some American Software analysts. They expect the company to post a final loss in 2024, before turning a profit of US$3.9m in 2025. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 158% 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.

Given this is a high-level overview, we won’t go into details of Iveda Solutions' upcoming projects, but, bear 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.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 20% 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 Iveda Solutions, so if you are interested in understanding the company at a deeper level, take a look at Iveda Solutions' company page on Simply Wall St. We've also put together a list of key aspects you should further research:

1. Historical Track Record: What has Iveda Solutions' 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 Iveda Solutions' 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.