Quarterly Revenue Growth
Quarterly revenue growth measures the percentage increase or decrease in a company’s revenue compared to the same quarter in the previous year or the preceding quarter. It is a key indicator of a company’s performance and its ability to expand its market share or improve sales. Positive quarterly revenue growth signals that a company is successfully increasing its sales, while negative growth may indicate challenges such as declining demand or increased competition. Investors use this metric to assess a company’s growth trajectory and market potential.
Example
A software company reports a 15% quarterly revenue growth compared to the same quarter last year, indicating a successful expansion in its customer base and market reach.
Key points
• Measures the change in a company’s revenue compared to previous quarters.
• Indicates the company’s ability to grow sales and market share.
• Positive growth suggests expansion, while negative growth may signal challenges.