Loss of Applied Blockchain, Inc. (NASDAQ: APLD)
With the business potentially at an important milestone, we thought we would take a closer look Applied Blockchain, Inc.’s (NASDAQ: APLD) future goals. Applied Blockchain, Inc. operates crypto mining and co-hosting operations. With the last fiscal year’s loss of $ 568,000 and a loss of $ 18 million in twelve months, the company, with a market value of $ 101 million, amplified its loss by moving further away from the breakeven target. Many investors are wondering how much Applied Blockchain will make a profit, with the big question “when will the company go into balance?” We have put together a brief overview of industry analysts’ expectations of the company, its breakeven year and its implied growth rate.
See our latest analysis for Applied Blockchain
The consensus from 6 of the US software analysts is that Applied Blockchain is on the verge of breakeven. They expect the company to incur a final loss in 2023, before generating a positive profit of $ 96 million in 2024. Therefore, the company is expected to balance in approx. 2 years from now. To reach this breakeven date, we calculated the rate at which the company must grow from year to year. It turns out that an average annual growth rate of 72% is expected, which is extremely upbeat. If this price turns out to be too aggressive, the company could become profitable much later than analysts predict.
We will not review company-specific developments for Applied Blockchain given that this is a high-level summary, but take into account that a high growth rate is generally not out of the ordinary, especially when a company is in an investment period.
One thing we would like to point out is that Applied Blockchain does not have debt on the balance sheet, which is quite unusual for a cash-burning growth company, which typically has high debt in relation to equity. This means that the company has operated solely on its equity investment and has no debt burden. This aspect reduces the risk of investing in the loss-making company.
Next step:
This article is not intended to be a comprehensive analysis of Applied Blockchain, so if you are interested in understanding the company on a deeper level, take a look at Applied Blockchain’s company page at Simply Wall St. We’ve also put together a list of key factors you should investigate further:
- 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 to visualize whether Applied Blockchain is currently mispriced by the market.
- Leadership group: An experienced management team at the helm increases our confidence in the company – take a look at who sits on Applied Blockchain’s board and the CEO’s background.
- Other high-performance stocks: Are there other stocks that provide better prospects with documented results? Explore our free list of these great stocks here.
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This article by Simply Wall St is general. We provide comments based on historical data and analyst forecasts only using an objective methodology, and our articles are not intended to be economic 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 basic 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 aforementioned shares.
