Market Sentiment Around Loss-Making Bridgeline Digital, Inc. (NASDAQ:BLIN)

Bridgeline Digital, Inc. (NASDAQ:BLIN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bridgeline Digital, Inc. operates as a digital engagement company in the United States. On 30 September 2021, the US$21m market-cap company posted a loss of US$8.7m for its most recent financial year. The most pressing concern for investors is Bridgeline Digital's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Bridgeline Digital

Bridgeline Digital is bordering on breakeven, according to some American Software analysts. They expect the company to post a final loss in 2022, before turning a profit of US$35k in 2023. The company is therefore projected to breakeven just over a year 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 113% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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Given this is a high-level overview, we won’t go into details of Bridgeline Digital's upcoming projects, though, 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 judiciously, with debt making up 8.8% 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 Bridgeline Digital to cover in one brief article, but the key fundamentals for the company can all be found in one place – Bridgeline Digital's company page on Simply Wall St. We've also compiled a list of important factors you should further research:

1. Historical Track Record: What has Bridgeline Digital'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 Bridgeline Digital'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.