We feel now is a pretty good time to analyse Clear Secure, Inc.'s (NYSE:YOU) business as it appears the company may be on the cusp of a considerable accomplishment. Clear Secure, Inc. provides a member-centric secure identity platform in the United States. The company's loss has recently broadened since it announced a US$36m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$71m, moving it further away from breakeven. As path to profitability is the topic on Clear Secure'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.

View our latest analysis for Clear Secure

Consensus from 4 of the American Software analysts is that Clear Secure is on the verge of breakeven. They expect the company to post a final loss in 2023, before turning a profit of US$10m in 2024. Therefore, the company is expected 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 98% 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.

Underlying developments driving Clear Secure's growth isn't the focus of this broad overview, however, take into account that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we'd like to point out is that Clear Secure 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.

Next Steps:

This article is not intended to be a comprehensive analysis on Clear Secure, so if you are interested in understanding the company at a deeper level, take a look at Clear Secure's company page on Simply Wall St. We've also compiled a list of pertinent aspects you should further research:

1. Valuation: What is Clear Secure 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 Clear Secure 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 Clear Secure'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.