Angi Inc. (NASDAQ:ANGI) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Angi Inc. connects home service professionals with consumers in the United States and internationally. The US$993m market-cap company's loss lessened since it announced a US$31m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$18m, as it approaches breakeven. As path to profitability is the topic on Angi'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.

Consensus from 8 of the American Interactive Media and Services analysts is that Angi is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$26m in 2025. So, the company is predicted to breakeven just over a year 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 55%, which is rather optimistic! 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 Angi given that this is a high-level summary, though, keep in mind that by and large 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 issue worth mentioning. Angi currently has a relatively high level of debt. Typically, debt shouldn't exceed 40% of your equity, which in Angi's case is 48%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are key fundamentals of Angi 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 Angi, take a look at Angi's company page on Simply Wall St. We've also compiled a list of important aspects you should look at:

1. Valuation: What is Angi 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 Angi 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 Angi'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.

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