Revenue growth %
Revenue growth is a financial metric that measures the percentage change in a company's total revenue over specific time periods. This metric provides insight into the company's ability to increase or decrease its sales and overall revenue generation.
Different time periods for calculating the metric include:
- Annual YoY (Year-over-Year): Compares the percentage change in revenue between the two most recent years, for example, 2023 and 2022.
- Quarterly YoY: Compares the percentage change in revenue for the most recent quarter (e.g., Q2 2024) with the same quarter in the previous year (Q2 2023).
- TTM YoY (Trailing Twelve Months Year-over-Year): Compares the percentage change in revenue for the last known TTM period ending, for example, in Q2 2024 with the TTM period ending in Q2 2023.
- Quarterly QoQ (Quarter-over-Quarter): Compares the percentage change in revenue between the two most recent quarters (e.g., Q2 2024 and Q1 2024), to assess the QoQ growth in total revenue.
Revenue growth helps assess the company's performance in generating sales and increasing its top-line revenue. This metric can indicate the company's ability to expand its market share, introduce new products or services, or improve sales efficiency. Analyzing percentage revenue growth over different time periods allows investors to understand the company's revenue trends and overall business performance. Positive percentage growth indicates an increase in revenue, while negative percentage growth suggests a decrease in revenue compared to the previous period.