Revenue Growth Rate YoY / QoQ / CAGR
How fast revenue is increasing, expressed as a percentage over some period.
The fork, why two teams get different numbers
The window and the annualization method are the fight. Year-over-year (this
quarter vs the same quarter a year ago) smooths seasonality but lags a turning
point by up to a year. Sequential (quarter-over-quarter) annualized catches an
inflection early but amplifies seasonality and noise, and even "annualized"
splits into simple ×4 vs compounded ((1+q)^4 − 1), which diverge sharply at high
growth. Add organic vs total (acquisition-inclusive) and constant-currency vs
reported, and one quarter carries four defensible growth rates.
The trap
Sequential-annualized growth quoted off a seasonally strong quarter, or right after a one-time deal, manufactures a blistering headline the next quarter reverses.
- The full trap, worked on a real export
- Every formula variant, spelled out
- The reconciliation anchor, what to tie it to and when to refuse
Reference: SEC Regulation S-K / MD&A (period-over-period comparison) · standard financial-analysis convention