We feel now is a pretty good time to analyse EverCommerce Inc.'s (NASDAQ:EVCM) business as it appears the company may be on the cusp of a considerable accomplishment. EverCommerce Inc., together with its subsidiaries, provides integrated software-as-a-service solutions for service-based small and medium-sized businesses in the United States and internationally. The US$1.9b market-cap company’s loss lessened since it announced a US$41m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$24m, as it approaches breakeven. Many investors are wondering about the rate at which EverCommerce will turn a profit, with the big question being “when will the company breakeven?” In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
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EverCommerce is bordering on breakeven, according to the 10 American Software analysts. They expect the company to post a final loss in 2024, before turning a profit of US$15m in 2025. So, the company is predicted to breakeven approximately a year 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 88%, which is extremely buoyant. 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 EverCommerce given that this is a high-level summary, however, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
View our latest analysis for EverCommerce
One thing we would like to bring into light with EverCommerce is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in EverCommerce's case is 72%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
This article is not intended to be a comprehensive analysis on EverCommerce, so if you are interested in understanding the company at a deeper level, take a look at EverCommerce's company page on Simply Wall St. We've also put together a list of essential aspects you should further research:
Discover if EverCommerce might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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