Revenue Growth (YoY)
The percentage increase in revenue compared to the same period one year ago. The most fundamental growth metric.
Formula
Revenue Growth = ((Current Revenue − Prior Year Revenue) / Prior Year Revenue) × 100
How to Interpret
20%+ growth is considered high-growth. 10-20% is solid. Under 10% is mature/slow. Negative means the business is shrinking. Always compare YoY (not sequential) to remove seasonality.
Why It Matters
Revenue growth is the top line — everything else flows from it. A company can cut costs to boost margins temporarily, but sustained revenue growth requires genuine demand. It's the hardest metric to fake.
R40 publishes Revenue Growth (YoY) for every tracked company but keeps no per-company chart of it, so there is no ranking here yet. Read it in every company's Rule of 40 breakdown, where it is the growth half of the score.