Revenue Growth

RECENT NEWS  5 hrs ago  Comment 
NORWALK (dpa-AFX) - Online travel agency Priceline Group, Inc. (PCLN) reported Thursday a profit for the first quarter that edged up from last year, reflecting strong double-digit revenue growth amid higher travel bookings. Both adjusted earnings...  5 hrs ago  Comment 
BEIJING (dpa-AFX) - Chinese e-commerce giant Alibaba Group Holding Ltd (BABA) on Thursday reported a 48 percent decline in profit for the fourth quarter from last year, as strong revenue growth was more than offset by expenses, primarily on...
Forbes  7 hrs ago  Comment 
Chinese e-commerce powerhouse Alibaba Group Holding reported a 45% revenue increase in the quarter ended on March 31, 2015, as the company improves the proportion of mobile transactions across its online retail platforms.
Forbes  7 hrs ago  Comment 
We expect the company to report a marginal improvement in revenues in Q1. We also anticipate a modest growth in display ads revenues in Q1, excluding the overhang of shuttered sites, which is expected to impact growth in the first half of the...
Forbes  7 hrs ago  Comment 
The company added 407,000 high speed internet subscribers to take its subscriber tally to 22.37 million subscribers at the end of the quarter. However, the company lost 8,000 pay-TV subscribers in the quarter, which was a reversal from the 24,000...
BBC News  7 hrs ago  Comment 
Shares in Chinese e-commerce giant Alibaba rise 7% after it reports a strong rise in revenues and appoints a new chief executive.  8 hrs ago  Comment 
FRANKFURT (dpa-AFX) - Global lender Commerzbank AG (CRZBY.PK) with its core markets in Germany and Poland, Thursday announced a surge in the first quarter profit attributable to the shareholders to 366 million euros, from 200 million euros last...  May 7  Comment 
LONDON (dpa-AFX) - Telecity Group Plc. (TCY.L), a European provider of carrier-neutral data centres, reported Thursday that its first-quarter revenues edged down 0.1 percent from last year. Underlying revenue growth was 9.6 percent, slightly...  May 7  Comment 
Carl Zeiss Meditec AG records revenue growth of 8 percent DGAP-News: Carl Zeiss Meditec AG / Key word(s): Half Year Results Carl Zeiss Meditec AG records revenue growth of 8 percent 07.05.2015 /...
MarketWatch  May 6  Comment 
Cisco Systems’ tepid revenue growth is among the biggest challenges that Chuck Robbins, the newly named successor to John Chambers, will face.


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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