Bridgeline Digital, Inc. (NASDAQ:BLIN): Are Analysts Optimistic?
Bridgeline Digital, Inc. (NASDAQ:BLIN) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Bridgeline Digital, Inc. operates as a digital engagement company in the United States. With the latest financial year loss of US$9.8m and a trailing-twelve-month loss of US$2.6m, the US$8.2m market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Bridgeline Digital'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 Bridgeline Digital
Expectations from some of the American Software analysts is that Bridgeline Digital is on the verge of breakeven. They anticipate the company to incur a final loss in 2020, before generating positive profits of US$1.2m in 2021. So, the company is predicted to breakeven just over a year from now. How fast will the company have to grow each year in order to reach the breakeven point by 2021? Working backwards from analyst estimates, it turns out that they expect the company to grow 148% year-on-year, on average, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
Given this is a high-level overview, we won’t go into details of Bridgeline Digital's upcoming projects, however, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that The company has managed its capital judiciously, with debt making up 19% 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:
This article is not intended to be a comprehensive analysis on Bridgeline Digital, so if you are interested in understanding the company at a deeper level, take a look at Bridgeline Digital's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:
Historical Track Record: What has Bridgeline Digital'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.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Bridgeline Digital's board and the CEO’s background.
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.
This article by Simply Wall St is general in nature. 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
