Revenue Growth Rate Definition

Revenue growth is the increase or decrease in a company s sales between two periods.

Revenue growth rate definition. It is used to measure how fast a business is expanding. Revenue growth rate measures the month over month percentage increase in revenue. Revenue growth is the increase or decrease in a company s sales from one period to the next. Revenue growth rate is an indicator of how well a company is able to grow its sales revenue over a given time period.

While the revenue is an actual number the revenue growth rates simply compares the current sales figures total revenue with a previous period typically quarter to quarter or year to year. Revenue growth rate means the percentage increase in the company s gross revenue from the prior year to the year of grant determined as a b b where a equals the company s gross revenue the year of grant and b equals the company s gross revenue for the prior year. If a change in control occurs during the year the revenue growth rate will be calculated in accordance with the same formula except that a will be an amount equal to the company s gross revenue for the. Revenue growth rate what is revenue growth rate.

The revenue growth rate provides a solid indicator of how quickly your startup is growing. Shown as a percentage revenue growth illustrates the increases and decreases over time identifying trends in the business. It s one of the most common and important startup metrics. Revenue growth illustrates sales increases decreases over time.

Growth rates refer to the percentage change of a specific variable within a specific time period. Communicated as a percentage revenue growth demonstrates the degree to which your company s revenue has grown or shrunk over time. For investors growth rates typically represent the compounded annualized rate of growth of a. More valuable than a snapshot of revenue revenue growth helps investors identify trends in order to gauge revenue growth over time.