With the business potentially at an important milestone, we thought we'd take a closer look at IZEA Worldwide, Inc.'s (NASDAQ:IZEA) future prospects. IZEA Worldwide, Inc., together with its subsidiaries, provides software and professional services to connect brands and content creators in North America, the Asia Pacific, and internationally. The US$62m market-cap company posted a loss in its most recent financial year of US$19m and a latest trailing-twelve-month loss of US$3.4m shrinking the gap between loss and breakeven. The most pressing concern for investors is IZEA Worldwide's 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.

Expectations from some of the American Interactive Media and Services analysts is that IZEA Worldwide is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$2.2m in 2026. Therefore, the company is expected to breakeven roughly 12 months from now or less. At what rate will the company have to grow in order to realise the consensus estimates forecasting breakeven in under 12 months? Using a line of best fit, we calculated an average annual growth rate of 176%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving IZEA Worldwide's growth isn’t the focus of this broad overview, however, keep in mind that generally 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 prudently, with debt making up 0.04% 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 IZEA Worldwide, so if you are interested in understanding the company at a deeper level, take a look at IZEA Worldwide's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:

1. Historical Track Record: What has IZEA Worldwide'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 IZEA Worldwide'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.

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.