We feel now is a pretty good time to analyse Sabio Holdings Inc.'s (CVE:SBIO) business as it appears the company may be on the cusp of a considerable accomplishment. Sabio Holdings Inc. operates as a technology provider in the advertising areas of connected TV (CTV) and over-the-top (OTT) streaming in the United States and the United Kingdom. On 31 December 2023, the CA$13m market-cap company posted a loss of US$4.8m for its most recent financial year. The most pressing concern for investors is Sabio Holdings' path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for Sabio Holdings

According to the 2 industry analysts covering Sabio Holdings, the consensus is that breakeven is near. They expect the company to post a final loss in 2023, before turning a profit of US$2.4m in 2024. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 104% 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 Sabio Holdings' upcoming projects, but, bear in mind that generally 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 issue worth mentioning. Sabio Holdings currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

This article is not intended to be a comprehensive analysis on Sabio Holdings, so if you are interested in understanding the company at a deeper level, take a look at Sabio Holdings' company page on Simply Wall St. We've also put together a list of essential factors you should look at:

1. Historical Track Record: What has Sabio Holdings' 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 Sabio Holdings' 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.