AvePoint, Inc. (NASDAQ:AVPT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, the Middle East, Africa, and the Asia Pacific. On 31 December 2024, the US$2.9b market-cap company posted a loss of US$29m for its most recent financial year. As path to profitability is the topic on AvePoint's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Consensus from 7 of the American Software analysts is that AvePoint is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$4.6m in 2025. Therefore, the company is expected to breakeven roughly 12 months 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 96% year-on-year, on average, 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 AvePoint given that this is a high-level summary, however, keep in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for AvePoint

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.

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There are key fundamentals of AvePoint 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 AvePoint, take a look at AvePoint's company page on Simply Wall St. We've also put together a list of important 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.

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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.