The last three months have been tough on Digimarc Corporation (NASDAQ:DMRC) shareholders, who have seen the share price decline a rather worrying 31%. But that doesn't change the reality that over twelve months the stock has done really well. To wit, it had solidly beat the market, up 95%.

See our latest analysis for Digimarc

Given that Digimarc 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. Generally speaking, companies without profits are expected to grow revenue every year, and at a good clip. As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Over the last twelve months, Digimarc's revenue grew by 4.2%. That's not great considering the company is losing money. The modest growth is probably largely reflected in the share price, which is up 95%. That's not a standout result, but it is solid - much like the level of revenue growth. Given the market doesn't seem too excited about the stock, a closer look at the financial data could pay off, if you can find indications of a stronger growth trend in the future.

You can see how earnings and revenue have changed over time in the image below (click on the chart to see the exact values).

We like that insiders have been buying shares in the last twelve months. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. You can see what analysts are predicting for Digimarc in this interactive graph of future profit estimates.

A Different Perspective

It's good to see that Digimarc has rewarded shareholders with a total shareholder return of 95% in the last twelve months. Since the one-year TSR is better than the five-year TSR (the latter coming in at 3% per year), it would seem that the stock's performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. It's always interesting to track share price performance over the longer term. But to understand Digimarc better, we need to consider many other factors. For instance, we've identified 3 warning signs for Digimarc that you should be aware of.

Digimarc 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.

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. 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.

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