Cvent Holding Corp. (NASDAQ:CVT) shareholders should be happy to see the share price up 21% in the last month. But that doesn't change the reality of under-performance over the last twelve months. In fact the stock is down 43% in the last year, well below the market return.
The recent uptick of 15% could be a positive sign of things to come, so let's take a lot at historical fundamentals.
View our latest analysis for Cvent Holding
Given that Cvent Holding 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. When a company doesn't make profits, we'd generally expect to see good revenue growth. That's because fast revenue growth can be easily extrapolated to forecast profits, often of considerable size.
In the last year Cvent Holding saw its revenue grow by 8.7%. That's not a very high growth rate considering it doesn't make profits. Given this lacklustre revenue growth, the share price drop of 43% seems pretty appropriate. It's important not to lose sight of the fact that profitless companies must grow. So remember, if you buy a profitless company then you risk being a profitless investor.
You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image).
It's probably worth noting we've seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business. This free report showing analyst forecasts should help you form a view on Cvent Holding
A Different Perspective
Cvent Holding shareholders are down 43% for the year, even worse than the market loss of 16%. There's no doubt that's a disappointment, but the stock may well have fared better in a stronger market. The share price decline has continued throughout the most recent three months, down 17%, suggesting an absence of enthusiasm from investors. Basically, most investors should be wary of buying into a poor-performing stock, unless the business itself has clearly improved. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 3 warning signs for Cvent Holding (1 is significant!) that you should be aware of before investing here.
Cvent Holding 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 US exchanges.