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We feel now is a pretty good time to analyse Roadzen, Inc.'s (NASDAQ:RDZN) business as it appears the company may be on the cusp of a considerable accomplishment. Roadzen, Inc. operates as an insurance technology company. The US$65m market-cap company posted a loss in its most recent financial year of US$100m and a latest trailing-twelve-month loss of US$107m leading to an even wider gap between loss and breakeven. As path to profitability is the topic on Roadzen's 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.
According to the 2 industry analysts covering Roadzen, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2026, before generating positive profits of US$5.6m in 2027. Therefore, the company is expected to breakeven roughly 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 108% 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 Roadzen given that this is a high-level summary, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.
View our latest analysis for Roadzen
One thing we would like to bring into light with Roadzen is it currently has negative equity on its balance sheet. This can sometimes arise from accounting methods used to deal with accumulated losses from prior years, which are viewed as liabilities carried forward until it cancels out in the future. These losses tend to occur only on paper, however, in other cases it can be forewarning.
Next Steps:
This article is not intended to be a comprehensive analysis on Roadzen, so if you are interested in understanding the company at a deeper level, take a look at Roadzen's company page on Simply Wall St. We've also put together a list of essential factors you should further examine:
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Historical Track Record: What has Roadzen's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
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Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Roadzen's board and the CEO’s background.
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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.