Loss-Making CurveBeam AI Limited (ASX:CVB) Expected To Breakeven In The Medium-Term

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We feel now is a pretty good time to analyse CurveBeam AI Limited's (ASX:CVB) business as it appears the company may be on the cusp of a considerable accomplishment. CurveBeam AI Limited provides medical imaging platforms and clinical assessment solutions that focus on the orthopedic market and general bone health screening and diagnostics. With the latest financial year loss of AU$51m and a trailing-twelve-month loss of AU$57m, the AU$77m market-cap company amplified its loss by moving further away from its breakeven target. Many investors are wondering about the rate at which CurveBeam AI will turn a profit, with the big question being “when will the company breakeven?” Below we will provide a high-level summary of the industry analysts’ expectations for the company.

Check out our latest analysis for CurveBeam AI

According to the 2 industry analysts covering CurveBeam AI, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of AU$9.9m in 2027. So, the company is predicted to breakeven approximately 3 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 79% 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.

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ASX:CVB Earnings Per Share Growth July 26th 2024

Underlying developments driving CurveBeam AI's growth isn’t the focus of this broad overview, though, bear in mind that by and large 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 aspect worth mentioning. The company has managed its capital prudently, with debt making up 29% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

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

  1. Historical Track Record: What has CurveBeam AI's 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 CurveBeam AI'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.