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Breakeven On The Horizon For IZEA Worldwide, Inc. (NASDAQ:IZEA)

·3-min read

We feel now is a pretty good time to analyse IZEA Worldwide, Inc.'s (NASDAQ:IZEA) business as it appears the company may be on the cusp of a considerable accomplishment. IZEA Worldwide, Inc., together with its subsidiaries, creates and operates online marketplaces that connect marketers and content creators. The company’s loss has recently broadened since it announced a US$3.1m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$3.7m, moving it further away from breakeven. As path to profitability is the topic on IZEA Worldwide'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 IZEA Worldwide

Expectations from some of the American Interactive Media and Services analysts is that IZEA Worldwide is on the verge of breakeven. They expect the company to post a final loss in 2022, before turning a profit of US$3.1m in 2023. Therefore, the company is expected to breakeven just over a year from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 146% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

earnings-per-share-growth
earnings-per-share-growth

We're not going to go through company-specific developments for IZEA Worldwide given that this is a high-level summary, though, take into account that by and large 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 aspect worth mentioning. The company has managed its capital prudently, with debt making up 0.09% 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 IZEA Worldwide to cover in one brief article, but the key fundamentals for the company can all be found in one place – IZEA Worldwide's company page on Simply Wall St. We've also put together a list of pertinent aspects you should further research:

  1. Historical Track Record: What has IZEA Worldwide's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

  2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on IZEA Worldwide'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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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