We feel now is a pretty good time to analyse BlinkLab Limited's (ASX:BB1) business as it appears the company may be on the cusp of a considerable accomplishment. BlinkLab Limited focuses on the development and commercialization of intellectual property related to smartphone-neurobehavioral testing. The AU$34m market-cap company announced a latest loss of AU$1.8m on 30 June 2024 for its most recent financial year result. The most pressing concern for investors is BlinkLab's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

See our latest analysis for BlinkLab

According to the 2 industry analysts covering BlinkLab, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of AU$1.7m in 2027. The company is therefore projected to breakeven around 2 years from now. How fast will the company have to grow each year in order to reach the breakeven point by 2027? Working backwards from analyst estimates, it turns out that they expect the company to grow 56% year-on-year, on average, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving BlinkLab's growth isn’t the focus of this broad overview, however, bear in mind that generally a healthcare tech company has lumpy cash flows which are contingent on the product and stage of development the company is in. This means, large upcoming growth rates are not abnormal as the company is beginning to reap the benefits of earlier investments.

One thing we’d like to point out is that BlinkLab has no debt on its balance sheet, which is rare for a loss-making healthcare tech company, which typically has high 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 key fundamentals of BlinkLab 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 BlinkLab, take a look at BlinkLab's company page on Simply Wall St. We've also put together a list of important factors you should look at:

1. Historical Track Record: What has BlinkLab'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 BlinkLab'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.