We feel now is a pretty good time to analyse AudioEye, Inc.'s (NASDAQ:AEYE) business as it appears the company may be on the cusp of a considerable accomplishment. AudioEye, Inc. provides patented, internet content publication, distribution software, and related services to Internet and other media to people regardless of their device, location, or disabilities in the United States. The US$331m market-cap company posted a loss in its most recent financial year of US$5.9m and a latest trailing-twelve-month loss of US$3.3m shrinking the gap between loss and breakeven. Many investors are wondering about the rate at which AudioEye 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.

According to the 4 industry analysts covering AudioEye, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$1.3m in 2025. Therefore, the company is expected to breakeven just over a year from today. 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 124% is expected, which signals high confidence from analysts. 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 AudioEye given that this is a high-level summary, but, take into account that generally a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we would like to bring into light with AudioEye is its debt-to-equity ratio of 124%. Typically, debt shouldn't exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

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

1. Valuation: What is AudioEye 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 AudioEye 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 AudioEye'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.