We feel now is a pretty good time to analyse SmartRent, Inc.'s (NYSE:SMRT) business as it appears the company may be on the cusp of a considerable accomplishment. SmartRent, Inc., an enterprise real estate technology company, provides management software and applications to rental property owners and operators, property managers, homebuilders, developers, and residents in the United States. With the latest financial year loss of US$96m and a trailing-twelve-month loss of US$71m, the US$501m market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on SmartRent's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

See our latest analysis for SmartRent

SmartRent is bordering on breakeven, according to the 7 American Electronic analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$1.3m in 2024. The company is therefore projected to breakeven just over a year from today. How fast will the company have to grow each year in order to reach the breakeven point by 2024? Working backwards from analyst estimates, it turns out that they expect the company to grow 114% year-on-year, on average, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Given this is a high-level overview, we won't go into details of SmartRent's upcoming projects, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there's one aspect worth mentioning. SmartRent currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth 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 SmartRent 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 SmartRent, take a look at SmartRent's company page on Simply Wall St. We've also put together a list of pertinent factors you should further examine:

1. Valuation: What is SmartRent 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 SmartRent 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 SmartRent'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.