Instructure Holdings, Inc. (NYSE:INST) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Instructure Holdings, Inc. provides cloud-based learning, assessment, development, and engagement systems worldwide. The US$3.6b market-cap company posted a loss in its most recent financial year of US$34m and a latest trailing-twelve-month loss of US$34m shrinking the gap between loss and breakeven. As path to profitability is the topic on Instructure Holdings' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts' expectations for the company.
See our latest analysis for Instructure Holdings
According to the 12 industry analysts covering Instructure Holdings, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$9.8m in 2025. Therefore, the company is expected 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 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 98% year-on-year, on average, 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 Instructure Holdings given that this is a high-level summary, however, take into account that typically 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 prudently, with debt making up 38% 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:
There are too many aspects of Instructure Holdings to cover in one brief article, but the key fundamentals for the company can all be found in one place – Instructure Holdings' company page on Simply Wall St. We've also compiled a list of important aspects you should further examine:
- Valuation: What is Instructure Holdings 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 Instructure Holdings is currently mispriced by the market.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Instructure Holdings'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.
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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.