With the business potentially at an important milestone, we thought we'd take a closer look at HubSpot, Inc.'s (NYSE:HUBS) future prospects. HubSpot, Inc., together with its subsidiaries, provides a cloud-based customer relationship management (CRM) platform for businesses in the Americas, Europe, and the Asia Pacific. With the latest financial year loss of US$176m and a trailing-twelve-month loss of US$134m, the US$29b market-cap company alleviated its loss by moving closer towards its target of breakeven. Many investors are wondering about the rate at which HubSpot will turn a profit, with the big question being "when will the company breakeven?" Below we will provide a high-level summary of the industry analysts' expectations for the company.

Consensus from 30 of the American Software analysts is that HubSpot is on the verge of breakeven. They anticipate the company to incur a final loss in 2025, before generating positive profits of US$117m in 2026. The company is therefore projected to breakeven around 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 52% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for HubSpot given that this is a high-level summary, but, bear 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 The company has managed its capital prudently, with debt making up 32% 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:

This article is not intended to be a comprehensive analysis on HubSpot, so if you are interested in understanding the company at a deeper level, take a look at HubSpot's company page on Simply Wall St. We've also compiled a list of essential factors you should further examine:

1. Valuation: What is HubSpot 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 HubSpot 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 HubSpot'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