Loss-Making Pointerra Limited (ASX:3DP) Set To Breakeven

Simply Wall St · 01/07 22:24

With the business potentially at an important milestone, we thought we'd take a closer look at Pointerra Limited's (ASX:3DP) future prospects. Pointerra Limited provides a cloud-based solution for storing, processing, managing, analyzing, extracting, visualizing, and sharing 3D data in Australia and the United States. The AU$33m market-cap company announced a latest loss of AU$5.2m on 30 June 2024 for its most recent financial year result. Many investors are wondering about the rate at which Pointerra will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

See our latest analysis for Pointerra

Pointerra is bordering on breakeven, according to some Australian Software analysts. They anticipate the company to incur a final loss in 2024, before generating positive profits of AU$2.1m in 2025. Therefore, the company is expected to breakeven roughly a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 126% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

earnings-per-share-growth
ASX:3DP Earnings Per Share Growth January 7th 2025

Underlying developments driving Pointerra's growth isn’t the focus of this broad overview, though, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. Pointerra 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. Oftentimes, losses exist only on paper but other times, it can be a red flag.

Next Steps:

This article is not intended to be a comprehensive analysis on Pointerra, so if you are interested in understanding the company at a deeper level, take a look at Pointerra's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should look at:

  1. Valuation: What is Pointerra worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Pointerra is currently mispriced by the market.
  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Pointerra’s 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.