Revenue Growth

Year-over-year growth is (current revenue / comparable prior-year revenue − 1) × 100. Hypothetical revenue rising from $100 million to $110 million gives 10% growth. Compare the same quarter across years when seasonality matters.

For positive starting and ending values, CAGR is (ending / beginning) raised to 1/n, minus 1, where n is the number of years between observations. Revenue of $100 million in 2022 and $121 million in 2024 gives 10% CAGR over two years, not three. Three annual observations span two annual growth intervals.

Reported growth can include price changes, volumes, acquisitions, disposals and currency translation. Organic growth can include higher prices; it does not necessarily mean more units sold. Read the issuer’s definition and reconciliation.

Hypothetical reported growth of 12% could include an acquisition contribution while the continuing business is flat. Do not subtract unlike percentages or invent a breakdown when the company has not supplied one.

Compare growth with operating profit, cash collected, customer concentration and investment needs. Subscription revenue can improve visibility but remains exposed to cancellations, renewal terms and collection risk.

A larger starting base requires more additional sales to maintain the same percentage growth. That is an economic challenge, not a mathematical rule that a certain growth rate becomes impossible. Model several outcomes rather than extending a high rate indefinitely.

A single annual observation cannot establish annual growth. Two comparable years support one annual growth comparison, not a three- or five-year trend. Missing values should remain unavailable rather than becoming zero.

Check fiscal year length, restatements and currency before calculating a trend. The history visible in a subscription tier and the history used by a scoring calculation are separate questions; a shorter display alone does not establish that the calculation changed.