growth
Tracked on R40
RevG Revenue Growth (YoY)
The percentage increase in revenue compared to the same period one year ago. The most fundamental growth metric.
Formula
Revenue Growth = ((Current Revenue − Prior Year Revenue) / Prior Year Revenue) × 100
How to Interpret
20%+ growth is considered high-growth. 10-20% is solid. Under 10% is mature/slow. Negative means the business is shrinking. Always compare YoY (not sequential) to remove seasonality.
Why It Matters
Revenue growth is the top line — everything else flows from it. A company can cut costs to boost margins temporarily, but sustained revenue growth requires genuine demand. It's the hardest metric to fake.
Example
Revenue rising from $200M in last year's quarter to $250M this year is 25% YoY growth (($250M − $200M) ÷ $200M × 100).