When Will Iveda Solutions, Inc. (NASDAQ:IVDA) Become Profitable?

Iveda Solutions, Inc. (NASDAQ:IVDA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Iveda Solutions, Inc. provides artificial intelligence (AI) and digital transformation technologies in the United States, Egypt, and Taiwan. The US$15m market-cap company posted a loss in its most recent financial year of US$3.3m and a latest trailing-twelve-month loss of US$3.1m shrinking the gap between loss and breakeven. The most pressing concern for investors is Iveda Solutions' path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

View our latest analysis for Iveda Solutions

Iveda Solutions is bordering on breakeven, according to some American Software analysts. They expect the company to post a final loss in 2024, before turning a profit of US$6.0m in 2025. Therefore, the company is expected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 129%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth

Underlying developments driving Iveda Solutions' growth isn’t the focus of this broad overview, but, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 2.6% 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 too many aspects of Iveda Solutions to cover in one brief article, but the key fundamentals for the company can all be found in one place – Iveda Solutions' company page on Simply Wall St. We've also put together a list of important factors you should further examine:

1. Historical Track Record: What has Iveda Solutions' 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 Iveda Solutions' 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.