When Can We Expect A Profit From MicroVision, Inc. (NASDAQ:MVIS)?

With the business potentially at an important milestone, we thought we'd take a closer look at MicroVision, Inc.'s (NASDAQ:MVIS) future prospects. MicroVision, Inc. develops and sells lidar sensors and software used in automotive safety and autonomous driving applications. The US$250m market-cap company posted a loss in its most recent financial year of US$83m and a latest trailing-twelve-month loss of US$90m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on MicroVision'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.

See our latest analysis for MicroVision

According to the 2 industry analysts covering MicroVision, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$16m in 2026. The company is therefore projected to breakeven around 2 years from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 53% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving MicroVision's growth isn’t the focus of this broad overview, however, 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 MicroVision 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 MicroVision 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 MicroVision, take a look at MicroVision's company page on Simply Wall St. We've also put together a list of relevant aspects you should further research:

1. Historical Track Record: What has MicroVision'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.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on MicroVision'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.