Applied Blockchain, Inc.’s (NASDAQ:APLD) Profit Outlook
With the business potentially at an important milestone, we thought we’d take a closer look Applied Blockchain, Inc.’s (NASDAQ:APLD) future goals. Applied Blockchain, Inc. designs, develops and operates data centers in North America. The US$217m market company had a loss in the last financial year of US$22m and a trailing twelve month loss of US$13m, narrowing the gap between loss and breakeven. Since the path to profitability is the topic for Applied Blockchain’s investors, we decided to gauge market sentiment. In this article, we will get into the expectations for the company’s growth and when analysts expect it to become profitable.
See our latest analysis for Applied Blockchain
Applied Blockchain is on the verge of breakeven, according to the 6 US software analysts. They expect the company to incur a final loss in 2023, before generating a positive profit of $51 million in 2024. So the company is predicted to break even in about 2 years from today. How fast must the company grow each year to break even by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 111% year-over-year on average, which is extremely good. If this rate turns out to be too aggressive, the company could become profitable much later than analysts predict.
We won’t go over company-specific developments for Applied Blockchain given that this is a high-level summary, but keep in mind that a high forecast growth rate is usually not unusual for a company currently undergoing an investment period.
One thing we would like to point out is that the company has managed its capital sensibly, with debt making up 19% of equity. This means that the company has mainly financed its operations from equity, and its low debt obligations reduce the risk surrounding investment in the loss-making company.
Next step:
There are too many aspects of Applied Blockchain to cover in one short article, but the most important fundamentals of the company can all be found in one place – Applied Blockchain’s company page on Simply Wall St. We’ve also put together a list of relevant factors you should investigate further:
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Valuation: What is Applied Blockchain worth today? Is the future growth potential already included in the price? The intrinsic value infographic in our free research report helps visualize whether Applied Blockchain is currently mispriced by the market.
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Management group: An experienced management team at the helm increases our confidence in the business – take a look at who sits on Applied Blockchain’s board and the CEO’s background.
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Other high performing stocks: Are there other stocks that offer better prospects with proven results? Explore our free list of these great stocks here.
Do you have feedback on this article? Worried about the content? Contact with us directly. Alternatively, you can email the editors (at) simplywallst.com.
This article by Simply Wall St is general. We provide commentary based on historical data and analyst forecasts only using an objective methodology, and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. We aim to provide you with long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the shares mentioned.
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