Analysts Are Optimistic We'll See A Profit From Audioboom Group plc (LON:BOOM)

With the business potentially at an important milestone, we thought we'd take a closer look at Audioboom Group plc's (LON:BOOM) future prospects. Audioboom Group plc, a podcast company, operates a spoken-word audio platform for hosting, distributing, and monetizing content primarily in the United Kingdom and the United states. The UK£235m market-cap company’s loss lessened since it announced a US$3.3m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$1.8m, as it approaches breakeven. The most pressing concern for investors is Audioboom Group's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for Audioboom Group

Audioboom Group is bordering on breakeven, according to some British Interactive Media and Services analysts. They anticipate the company to incur a final loss in 2021, before generating positive profits of US$1.5m in 2022. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 86% is expected, 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.

earnings-per-share-growth

We're not going to go through company-specific developments for Audioboom Group given that this is a high-level summary, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one aspect worth mentioning. Audioboom Group currently has no debt on its balance sheet, which is quite unusual for a cash-burning 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 too many aspects of Audioboom Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Audioboom Group's company page on Simply Wall St. We've also put together a list of pertinent factors you should look at:

1. Valuation: What is Audioboom Group 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 Audioboom Group 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 Audioboom Group’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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.