With the business potentially at an important milestone, we thought we'd take a closer look at PropertyGuru Group Limited's (NYSE:PGRU) future prospects. PropertyGuru Group Limited operates digital property classifieds marketplaces that connects homeowners and tenants with verified home service providers in Singapore, Vietnam, Malaysia, Thailand, and Indonesia. The US$622m market-cap company announced a latest loss of S$15m on 31 December 2023 for its most recent financial year result. Many investors are wondering about the rate at which PropertyGuru Group will turn a profit, with the big question being "when will the company breakeven?" In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Consensus from 5 of the American Interactive Media and Services analysts is that PropertyGuru Group is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of S$5.2m in 2025. Therefore, the company is expected 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 137%, which signals high confidence from analysts. Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving PropertyGuru Group's growth isn't the focus of this broad overview, 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.

One thing we'd like to point out is that PropertyGuru Group has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. This means that the company has been operating purely on its equity investment and has no debt burden. This aspect reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of PropertyGuru Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – PropertyGuru Group's company page on Simply Wall St. We've also compiled a list of relevant factors you should further research:

1. Valuation: What is PropertyGuru Group 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 PropertyGuru Group 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 PropertyGuru Group'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.