I found this 24 Nov 2021 article. Appologies if you've seen this article already.
Notwithstanding interest rate rises, if these analysts are right, we could be looking at a good end of year.
Has any fellow holders have any further info of when NextDC target to break even?NEXTDC Limited (ASX:NXT) Has Found A Path To Profitability
With the business potentially at an important milestone, we thought we'd take a closer look at NEXTDC Limited's (ASX:NXT) future prospects. NEXTDC Limited, a technology company, provides data center outsourcing solutions, connectivity services, and infrastructure management software in Australia. On 30 June 2021, the AU$5.4b market-cap company posted a loss of AU$21m for its most recent financial year. Many investors are wondering about the rate at which NEXTDC will turn a profit, with the big question being “when will the company breakeven?” We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.
Check out our latest analysis for NEXTDC
According to the 15 industry analysts covering NEXTDC, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2021, before generating positive profits of AU$5.7m in 2022. The company is therefore projected to breakeven around a year from now or less! How fast will the company have to grow to reach the consensus forecasts that anticipate breakeven by 2022? Working backwards from analyst estimates, it turns out that they expect the company to grow 40% year-on-year, on average, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.
ASX:NXT Earnings Per Share Growth November 24th 2021
We're not going to go through company-specific developments for NEXTDC given that this is a high-level summary, but, 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.
One thing we would like to bring into light with NEXTDC is its relatively high level of debt. Typically, debt shouldn’t exceed 40% of your equity, which in NEXTDC's case is 47%. Note that a higher debt obligation increases the risk around investing in the loss-making company.
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