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VerticalScope projected to reach profitability by 2025 despite high debt

EditorAmbhini Aishwarya
Published 10/11/2023, 10:30 pm
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In a recent analysis, VerticalScope Holdings Inc., a company specializing in digital community platforms, has been the focus of investor attention due to its financial trajectory and market position. With a current market capitalization of CA$118 million (USD1 = CAD1.3813), VerticalScope is navigating through a challenging phase marked by significant losses—$25 million in the last fiscal year and a trailing twelve-month loss of $6.9 million. However, there is a silver lining as the gap in losses is showing signs of narrowing.

Analysts are looking at VerticalScope with cautious optimism, predicting that the company will post its final loss in 2024. They anticipate a turnaround with the company achieving profitability by 2025, with an expected profit of $3 million. To realize this goal, VerticalScope would need to sustain an ambitious annual growth rate of 68%.

The company’s financial structure reveals that it carries a high level of debt, which stands at 80% of its equity. This figure is notably double the typical standard of 40%, suggesting that investors may face heightened risks due to the company's aggressive investment strategy. High debt levels are often associated with companies in an investment phase that are chasing higher growth rates.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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