With the business potentially at an important milestone, we thought we'd take a closer look at CrowdStrike Holdings, Inc.'s (NASDAQ:CRWD) future prospects. CrowdStrike Holdings, Inc. provides cloud-delivered protection across endpoints and cloud workloads, identity, and data. With the latest financial year loss of US$183m and a trailing-twelve-month loss of US$12m, the US$61b market-cap company alleviated its loss by moving closer towards its target of breakeven. As path to profitability is the topic on CrowdStrike Holdings' 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 CrowdStrike Holdings

CrowdStrike Holdings is bordering on breakeven, according to the 47 American Software analysts. They anticipate the company to incur a final loss in 2023, before generating positive profits of US$64m in 2024. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 49% is expected, 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 CrowdStrike Holdings given that this is a high-level summary, though, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Before we wrap up, there's one aspect worth mentioning. The company has managed its capital judiciously, with debt making up 36% 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 key fundamentals of CrowdStrike Holdings which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at CrowdStrike Holdings, take a look at CrowdStrike Holdings' company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

1. Valuation: What is CrowdStrike 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 CrowdStrike Holdings 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 CrowdStrike Holdings'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.