LiveOne, Inc. (NASDAQ:LVO) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. LiveOne, Inc., a digital media company, engages in the acquisition, distribution, and monetization of live music, Internet radio, podcasting/vodcasting, and music-related streaming and video content. The US$184m market-cap company posted a loss in its most recent financial year of US$10m and a latest trailing-twelve-month loss of US$17m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is LiveOne's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for LiveOne

LiveOne is bordering on breakeven, according to the 4 American Entertainment analysts. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$1.9m in 2026. The company is therefore projected to breakeven around 2 years from today. 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 94%, which is extremely buoyant. 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 LiveOne's upcoming projects, but, keep in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with LiveOne is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in LiveOne's case is 94%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

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

1. Valuation: What is LiveOne 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 LiveOne 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 LiveOne’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.