BlueBet Holdings Ltd (ASX:BBT) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. BlueBet Holdings Ltd provides sports and racing betting products and services under the BlueBet and betr brands to online and telephone clients through online wagering platform and mobile applications in Australia and North America. The AU$167m market-cap company posted a loss in its most recent financial year of AU$47m and a latest trailing-twelve-month loss of AU$37m shrinking the gap between loss and breakeven. As path to profitability is the topic on BlueBet Holdings' investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for BlueBet Holdings

Consensus from 2 of the Australian Hospitality analysts is that BlueBet Holdings is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of AU$15m in 2025. So, the company is predicted to breakeven approximately 12 months from now or less. How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 78% year-on-year, on average, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

Underlying developments driving BlueBet Holdings' growth isn’t the focus of this broad overview, but, 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.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.2% 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 BlueBet 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 BlueBet Holdings, take a look at BlueBet Holdings' company page on Simply Wall St. We've also put together a list of essential aspects you should further examine:

1. Valuation: What is BlueBet 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 BlueBet 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 BlueBet 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.

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.