MongoDB Inc’s (NASDAQ:MDB): MongoDB, Inc. operates as a general purpose database platform worldwide. With the latest financial year loss of -US$96.36m and a trailing-twelve month of -US$105.83m, the US$2.61b market-cap amplifies its loss by moving further away from its breakeven target. As path to profitability is the topic on MDB’s investors mind, I’ve decided to gauge market sentiment. In this article, I will touch on the expectations for MDB’s growth and when analysts expect the company to become profitable.See our latest analysis for MongoDB
According to the industry analysts covering MDB, breakeven is near. They anticipate the company to incur a final loss in -1, before generating positive profits of US$0 in . Therefore, MDB is expected to breakeven roughly a few months from now. How fast will MDB have to grow each year in order to reach the breakeven point by ? Working backwards from analyst estimates, it turns out that they expect the company to grow 3.60% year-on-year, on average, which is fair. If this rate turns out to be too low, MDB may become profitable faster than analysts expect.
I’m not going to go through company-specific developments for MDB given that this is a high-level summary, though, bear in mind that typically a low or volatile growth rate in the near future is not unusual, especially if the company is currently in an investment period.
Before I wrap up, there’s one aspect worth mentioning. MDB currently has no debt on its balance sheet, which is quite unusual for a cash-burning loss-making, growth company, which usually has a high level of debt relative to its equity. This means that MDB has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on MDB, so if you are interested in understanding the company at a deeper level, take a look at MDB’s company page on Simply Wall St. I’ve also put together a list of pertinent factors you should look at:
- Historical Track Record: What has MDB’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.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on MongoDB’s board and the CEO’s back ground.
- 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.