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It hasn't been the best quarter for Spark Networks SE (NYSEMKT:LOV) shareholders, since the share price has fallen 26% in that time. But that doesn't change the fact that the returns over the last year have been pleasing. In that time we've seen the stock easily surpass the market return, with a gain of 13%.
Because Spark Networks is loss-making, we think the market is probably more focussed on revenue and revenue growth, at least for now. Shareholders of unprofitable companies usually expect strong revenue growth. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.
In the last year Spark Networks saw its revenue grow by 22%. That's a fairly respectable growth rate. While the share price performed well, gaining 13% over twelve months, you could argue the revenue growth warranted it. If revenue stays on trend, there may be plenty more share price gains to come. But before deciding this growth stock is underappreciated, you might want to check out profitability trends (and cash flow)
You can see how revenue and earnings have changed over time in the image below, (click on the chart to see cashflow).
Take a more thorough look at Spark Networks's financial health with this free report on its balance sheet.
A Different Perspective
Spark Networks shareholders should be happy with the total gain of 13% over the last twelve months. Unfortunately the share price is down 26% over the last quarter. It may simply be that the share price got ahead of itself, although there may have been fundamental developments that are weighing on it. You might want to assess this data-rich visualization of its earnings, revenue and cash flow.
We will like Spark Networks better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.