Revenue Growth

Motley Fool  10 hrs ago  Comment 
Just as Twitter begins to address its user growth problem, a new issue is surfacing.
Benzinga  10 hrs ago  Comment 
Raymond James predicts Apple Inc. (NASDAQ: AAPL) shares will "remain range-bound" until signs of stabilization in revenue growth emerge. "Apple's guidance for $42 billion in revenue at the midpoint suggests iPhone unit sales will be well below...
The Hindu Business Line  Apr 27  Comment 
Indian IT sector will maintain global market share gains, supported by a wider coverage and operating efficiency  Apr 27  Comment 
PARIS (dpa-AFX) - Capgemini Group (CGEMY.PK, CAPP) reported consolidated revenues of 3.09 billion euros, in the first quarter of 2016, up 11.8% year-on-year and 13.9% at constant exchange rates. At constant Group structure and exchange rates,...
Motley Fool  Apr 27  Comment 
The global third-party logistics provider posts positive "net" revenue in Q1 2016 versus the prior year, but at a pace that suggests top-line growth may be taking a breather.
MarketWatch  Apr 27  Comment 
Twitter Inc. is banking on a big push to focus on video ads as a way to revive its slowing revenue growth amid a first quarter revenue shortfall and an anemic second quarter outlook that disappointed investors on Tuesday.
Benzinga  Apr 26  Comment 
Twitter Inc (NYSE: TWTR) shares fell off a cliff in Tuesday's after-hours session, down 11 percent amid disappointing guidance numbers and a warning of soft advertising spend. In its first quarter report released after the bell, Twitter said...
Wall Street Journal  Apr 26  Comment 
Brian Krzanich provided further details on how the company hopes to generate more revenue growth, describing five priorities for the chip maker as it reduces its dependence on the shrinking personal computer market.


Revenue Growth is the percent increase (or decrease) in a company's revenue between two or more equivalent fiscal periods

Revenue Growth is used to measure how fast a company's business is expanding. The figure shows the annual rate of increase/decrease in a company's revenue or sales growth. The figures give analysts, investors and participants an idea of how much a company's sales are increasing over time.

While revenue growth tends to fluctuate from fiscal year to fiscal year and fiscal quarter to fiscal quarter, investors look for trends in revenue growth as a means of gauging the company's growth over proscribed periods of time. All other things being equal, a company that is able to continually grow its revenue should see equivalent increases in net income.

Rate of Revenue Growth

Taking the derivative of the revenue growth gives you the rate of revenue growth, which tells you how much the rate of revenue growth is changing. Investors look at this figure to gauge a potential forthcoming change in earnings growth. If a company that has been able to consistently grow its revenues at some pace begins to see smaller revenue growth over one or more fiscal periods, it may be an indicator that the growth itself will continue to decrease over time, or that it has plateaued.


Company ABC generated $100 billion in revenue during its third quarter of 2005 and $120 billion in the fourth quarter that year, the company saw quarterly revenue growth of 20% sequentially.

If Company ABC generated $150 billion in the fourth quarter of 2004, the company would have seen its revenue increase 50% on a year-over-year basis

Revenue Growth Calculation on Wikinvest

Wikinvest calculates revenue growth as the growth of trailing twelve months of revenue. The treatment is different from Yahoo! Finance which calculates quarterly year-over-year growth. The following example will illustrate the difference:

' 2006 2007 2008

Q2 2008 is the most recent quarter. In this case, Yahoo! Finance would calculate revenue growth as -15.5% [(120-142)/142].

Wikinvest, on the other hand would calculate the growth as 11.2%. This is because wikinvest calculates the growth based on the revenue generated in the last twelve months. In this case, Q3 07, Q4 07, Q1 08 and Q2 08. Specially, it is calculated as:

Revenue growth = ((120+144+170+140)-(142+104+140+130))/(142+104+140+130) = 11.2%

Taking the growth based on trailing twelve months of revenue mitigates undue fluctuations that may affect a single quarter.

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