Yahoo Finance MoneyHero Limited (NASDAQ:MNY) Is Expected To Breakeven In The Near Future
We feel now is a pretty good time to analyse MoneyHero Limited's (NASDAQ:MNY) business as it appears the company may be on the cusp of a considerable accomplishment. MoneyHero Limited operates as a personal finance company. The US$88m market-cap company announced a latest loss of US$173m on 31 December 2023 for its most recent financial year result. The most pressing concern for investors is MoneyHero's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
View our latest analysis for MoneyHero
According to some industry analysts covering MoneyHero, breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$1.0m in 2025. 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 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 118% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of MoneyHero's upcoming projects, but, 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.
Before we wrap up, there’s one aspect worth mentioning. MoneyHero 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:
This article is not intended to be a comprehensive analysis on MoneyHero, so if you are interested in understanding the company at a deeper level, take a look at MoneyHero's company page on Simply Wall St. We've also put together a list of important aspects you should look at:
Historical Track Record: What has MoneyHero'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 MoneyHero's board and the CEO’s background.
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.
