Sonim Technologies, Inc.'s (NASDAQ:SONM) Profit Outlook

Sonim Technologies, Inc. (NASDAQ:SONM) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Sonim Technologies, Inc. provides ruggedized mobile phones and accessories for task workers. On 31 December 2020, the US$42m market-cap company posted a loss of US$30m for its most recent financial year. As path to profitability is the topic on Sonim Technologies' 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 Sonim Technologies

Sonim Technologies is bordering on breakeven, according to the 3 American Tech analysts. They expect the company to post a final loss in 2022, before turning a profit of US$395k in 2023. So, the company is predicted to breakeven approximately 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2023? Working backwards from analyst estimates, it turns out that they expect the company to grow 48% 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 Sonim Technologies' growth isn’t the focus of this broad overview, however, bear in mind that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 1.3% 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:

There are too many aspects of Sonim Technologies to cover in one brief article, but the key fundamentals for the company can all be found in one place – Sonim Technologies' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

1. Valuation: What is Sonim Technologies 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 Sonim Technologies 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 Sonim Technologies’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. 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.
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