8×8 Inc’s (NYSE:EGHT): 8×8, Inc. provides enterprise cloud communications and customer engagement solutions for small and mid-size businesses, mid-market, and distributed enterprises worldwide. The US$1.77b market-cap company announced a latest loss of -US$104.50m on 31 March 2018 for its most recent financial year result. The most pressing concern for investors is EGHT’s path to profitability – when will it breakeven? Below I will provide a high-level summary of the industry analysts’ expectations for EGHT.Check out our latest analysis for 8×8
According to the industry analysts covering EGHT, breakeven is near. They expect the company to post a final loss in -1, before turning a profit of US$0 in . Therefore, EGHT is expected to breakeven roughly a couple of months from now! How fast will EGHT 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 46.25% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving EGHT’s growth isn’t the focus of this broad overview, 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 I wrap up, there’s one aspect worth mentioning. EGHT currently has no debt on its balance sheet, which is rare for a loss-making loss-making, growth company, which usually has a high level of debt relative to its equity. This means that EGHT 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.
There are key fundamentals of EGHT which are not covered in this article, but I must stress again that this is merely a basic overview. For a more comprehensive look at EGHT, take a look at EGHT’s company page on Simply Wall St. I’ve also compiled a list of essential factors you should look at:
- Historical Track Record: What has EGHT’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 8×8’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.