We feel now is a pretty good time to analyse Workiva Inc.'s (NYSE:WK) business as it appears the company may be on the cusp of a considerable accomplishment. Workiva Inc., together with its subsidiaries, provides cloud-based reporting solutions in the United States and internationally. On 31 December 2023, the US$4.3b market-cap company posted a loss of US$128m for its most recent financial year. Many investors are wondering about the rate at which Workiva will turn a profit, with the big question being "when will the company breakeven?" Below we will provide a high-level summary of the industry analysts' expectations for the company.

Workiva is bordering on breakeven, according to the 10 American Software analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$7.0m in 2026. Therefore, the company is expected to breakeven roughly 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 73%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Workiva given that this is a high-level summary, though, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there's one issue worth mentioning. Workiva currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

Next Steps:

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

1. Valuation: What is Workiva 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 Workiva 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 Workiva'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.