AvePoint, Inc. (NASDAQ:AVPT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. AvePoint, Inc. provides cloud-native data management software platform in North America, Europe, Middle East, Africa, and Asia Pacific. The US$3.5b market-cap company's loss lessened since it announced a US$22m loss in the full financial year, compared to the latest trailing-twelve-month loss of US$7.6m, as it approaches breakeven. The most pressing concern for investors is AvePoint's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts' expectations for the company.

Consensus from 7 of the American Software analysts is that AvePoint is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$7.9m in 2025. The company is therefore projected 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 114%, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving AvePoint's growth isn't the focus of this broad overview, however, keep in mind that generally 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. AvePoint currently has no debt on its balance sheet, which is quite unusual for a cash-burning growth company, which usually has a high level of 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 AvePoint to cover in one brief article, but the key fundamentals for the company can all be found in one place – AvePoint's company page on Simply Wall St. We've also compiled a list of pertinent factors you should look at:

1. Valuation: What is AvePoint 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 AvePoint 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 AvePoint'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.