Revenue Growth

SeekingAlpha  4 hrs ago  Comment 
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SoftNAS™, the #1 Best-Selling NAS in the Cloud, today announced that it has achieved 50 percent average sustained revenue growth per month during the first half of 2014. The company has grown its customer base to nearly 250 enterprise...
Forbes  Aug 18  Comment 
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The Straits Times  Aug 15  Comment 
August 16, 2014 1:04 AM RESULTS for the second quarter were disappointing. Although all divisions other than land systems registered revenue growth year-on-year, profitability was quite weak, especially in the marine and land systems segments....
SeekingAlpha  Aug 15  Comment 
By WestEnd511: Weibo's (NASDAQ:WB) 2Q14 came in within my expectations in that the company reported robust revenue growth but also showed sequential erosion in operating metrics. While revenue of $77.3m beat consensus by $1.4m and non-GAAP EPS of...
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By Alpha Strategist: Dow Chemicals (NYSE:DOW) recently reported its second quarter earnings report. The company declared its adjusted earnings per share (EPS) of $0.74 reflecting y-o-y growth of 16 percent. Moreover, it declared revenue growth of...  Aug 14  Comment 
LONDON (dpa-AFX) - Carillion plc (CLLN.L) reported Thursday higher profit in its first half, despite lower revenues. The company also maintained its revenue growth outlook. The British integrated support services company, which had made an...


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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