Wishpond Technologies Ltd. (CVE:WISH) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Wishpond Technologies Ltd. provides marketing focused online business solutions in the United States, Canada, and internationally. The CA$20m market-cap company’s loss lessened since it announced a CA$1.9m loss in the full financial year, compared to the latest trailing-twelve-month loss of CA$1.0m, as it approaches breakeven. As path to profitability is the topic on Wishpond Technologies' investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

View our latest analysis for Wishpond Technologies

According to the 5 industry analysts covering Wishpond Technologies, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2025, before generating positive profits of CA$2.3m in 2026. So, the company is predicted to breakeven approximately 2 years from today. 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 96% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Wishpond Technologies given that this is a high-level summary, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 14% 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:

There are key fundamentals of Wishpond Technologies which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Wishpond Technologies, take a look at Wishpond Technologies' company page on Simply Wall St. We've also compiled a list of important aspects you should look at:

1. Valuation: What is Wishpond Technologies 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 Wishpond Technologies 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 Wishpond Technologies’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.

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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.