Published on 2 Mar 2024 on Simply Wall St. via Yahoo Finance

Breakeven Is Near for Dada Nexus Limited (NASDAQ:DADA)

Dada Nexus Limited (NASDAQ:DADA) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Dada Nexus Limited operates a platform of local on-demand retail and delivery in the People’s Republic of China. The US$550m market-cap company’s loss lessened since it announced a CN¥2.0b loss in the full financial year, compared to the latest trailing-twelve-month loss of CN¥1.0b, as it approaches breakeven. Many investors are wondering about the rate at which Dada Nexus 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.

View our latest analysis for Dada Nexus

According to the 14 industry analysts covering Dada Nexus, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of CN¥235m in 2024. The company is therefore projected to breakeven around 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 67% is expected, which is rather optimistic! If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.