BlinkLab Limited (ASX:BB1) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. BlinkLab Limited focuses on the development and commercialization of intellectual property related to smartphone-neurobehavioral testing. With the latest financial year loss of AU$1.8m and a trailing-twelve-month loss of AU$3.8m, the AU$54m market-cap company amplified its loss by moving further away from its breakeven target. The most pressing concern for investors is BlinkLab's 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.
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BlinkLab is bordering on breakeven, according to the 2 Australian Healthcare Services analysts. They expect the company to post a final loss in 2026, before turning a profit of AU$1.7m in 2027. So, the company is predicted to breakeven approximately 2 years 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 53%, which is extremely buoyant. 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 BlinkLab given that this is a high-level summary, but, bear in mind that typically healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.
Check out our latest analysis for BlinkLab
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. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.
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 key aspects you should further research:
Discover if BlinkLab 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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