With the business potentially at an important milestone, we thought we'd take a closer look at AvePoint, Inc.'s (NASDAQ:AVPT) future prospects. AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, the Middle East, Africa, and the Asia Pacific. The US$3.6b market-cap company’s loss lessened since it announced a US$29m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$24m, as it approaches breakeven. As path to profitability is the topic on AvePoint's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

According to the 8 industry analysts covering AvePoint, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$13m in 2025. So, the company is predicted to breakeven approximately 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 94% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for AvePoint given that this is a high-level summary, but, bear in mind that generally 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. AvePoint currently has no debt on its balance sheet, which is rare for a loss-making growth company, which usually has a high level of debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.

Next Steps:

There are too many aspects of AvePoint to cover in one brief article, but the key fundamentals for the company can all be found in one place – AvePoint's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further examine:

1. Valuation: What is AvePoint 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 AvePoint 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 AvePoint’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.