When will Dolphin Entertainment, Inc. (NASDAQ: DLPN) be profitable?

We feel that now is a good time to analyze Dolphin Entertainment (Nasdaq: DLPN) It appears that the company may be on the cusp of a major achievement. Dolphin Entertainment, Inc. and its subsidiaries operate in the United States as an independent entertainment marketing and premium content development company. The $29 million company lost $6.5 million in its most recent fiscal year and $2.7 million in the last 12 months, narrowing the gap between losses and breakeven. Since the road to profitability is a theme on the minds of Dolphin Entertainment investors, we decided to assess market sentiment. Below we provide a high-level summary of what industry analysts expect from the company.

Our analysis shows that DLPN may be overrated!

According to 2 industry analysts at Dolphin Entertainment, the consensus is that breakeven is coming. They expect the company to post a final loss in 2022, followed by a profit of $2.4 million in 2023. As a result, the company is expected to break even in just over a year. How fast must the company grow each year in order to reach breakeven by 2023? Contrary to analysts’ estimates, they expect the company to grow by an average of 166% year over year, indicating high analyst confidence. If the business grows at a slower pace, it will be profitable at a later date than expected.

Given that this is a high-level summary, we won’t go into the details of Dolphin Entertainment’s company-specific developments, but keep in mind that generally high growth rates are not unusual, especially when the company is in the investment horizon.

Before we wrap up, there is one aspect worth mentioning. The company manages its capital wisely, with debt representing 19% of equity. That means it primarily funds its operations through equity capital, and its low debt reduces the risk of investing in loss-making companies.

Next step:

There are many aspects of Dolphin Entertainment that cannot be covered in one short article, but the key foundations of the company can all be found in one place – Dolphin Entertainment’s company page on Simple Wall Street. We also list key areas that you should research further:

1. history record: How has Dolphin Entertainment performed in the past?Learn more and review in past track record analysis Free visual representation of our analysis For more clarity.
2. management team: Experienced management team at the helm, boosting confidence in our business – see Who is the background of the board members and CEO of Dolphin Entertainment.
3. Other outperforming stocks: Are there other stocks that offer better prospects and a solid track record?Explore our A free list of these great stocks is here.

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This article by Simply Wall St is general in nature. We provide commentary based solely on historical data and analyst forecasts using an unbiased methodology and our articles are not intended to provide financial advice. It does not constitute advice to buy or sell any stock and does not take into account your objectives or your financial situation. Our goal is to bring you long-term focused analytics driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Wall Street has no positions in any of the stocks mentioned.