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. The CA$22m market-cap company posted a loss in its most recent financial year of US$4.8m and a latest trailing-twelve-month loss of US$2.7m shrinking the gap between loss and breakeven. The most pressing concern for investors is Sabio Holdings' 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.

Check out our latest analysis for Sabio Holdings

Sabio Holdings is bordering on breakeven, according to the 3 Canadian Media analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$1.6m in 2024. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 123% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving Sabio Holdings' growth isn’t the focus of this broad overview, though, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

One thing we would like to bring into light with Sabio Holdings is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. 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 relevant factors you should further examine:

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.