It is doubtless a positive to see that the FiscalNote Holdings, Inc. (NYSE:NOTE) share price has gained some 87% in the last three months. But that's not enough to compensate for the decline over the last twelve months. Like a receding glacier in a warming world, the share price has melted 60% in that period. Some might say the recent bounce is to be expected after such a bad drop. Of course, it could be that the fall was overdone.
With that in mind, it's worth seeing if the company's underlying fundamentals have been the driver of long term performance, or if there are some discrepancies.
See our latest analysis for FiscalNote Holdings
Given that FiscalNote Holdings 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. That's because it's hard to be confident a company will be sustainable if revenue growth is negligible, and it never makes a profit.
FiscalNote Holdings grew its revenue by 30% over the last year. That's definitely a respectable growth rate. Unfortunately it seems investors wanted more, because the share price is down 60% in that time. It may well be that the business remains approximately on track, but its revenue growth has simply been delayed. To our minds it isn't enough to just look at revenue, anyway. Always consider when profits will flow.
The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).
If you are thinking of buying or selling FiscalNote Holdings stock, you should check out this FREE detailed report on its balance sheet.
A Different Perspective
Given that the market gained 12% in the last year, FiscalNote Holdings shareholders might be miffed that they lost 60%. While the aim is to do better than that, it's worth recalling that even great long-term investments sometimes underperform for a year or more. Putting aside the last twelve months, it's good to see the share price has rebounded by 87%, in the last ninety days. Let's just hope this isn't the widely-feared 'dead cat bounce' (which would indicate further declines to come). 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. Consider for instance, the ever-present spectre of investment risk. We've identified 3 warning signs with FiscalNote Holdings (at least 1 which shouldn't be ignored) , and understanding them should be part of your investment process.