It hasn't been the best quarter for Boku, Inc. (LON:BOKU) shareholders, since the share price has fallen 20% in that time. But over three years, the returns would have left most investors smiling To wit, the share price did better than an index fund, climbing 77% during that period.

Let's take a look at the underlying fundamentals over the longer term, and see if they've been consistent with shareholders returns.

View our latest analysis for Boku

Given that Boku didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Over the last three years Boku has grown its revenue at 23% annually. That's well above most pre-profit companies. While the compound gain of 21% per year over three years is pretty good, you might argue it doesn't fully reflect the strong revenue growth. So now might be the perfect time to put Boku on your radar. If the company is trending towards profitability then it could be very interesting.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

We consider it positive that insiders have made significant purchases in the last year. Even so, future earnings will be far more important to whether current shareholders make money. If you are thinking of buying or selling Boku stock, you should check out this free report showing analyst profit forecasts.

A Different Perspective

Boku shareholders are up 5.5% for the year. While you don't go broke making a profit, this return was actually lower than the average market return of about 13%. But the (superior) three-year TSR of 21% per year is some consolation. We prefer focus on longer term returns, as they are usually a more meaningful indication of the underlying business. It's always interesting to track share price performance over the longer term. But to understand Boku better, we need to consider many other factors. Take risks, for example - Boku has 3 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

Boku is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on GB exchanges.

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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.