What it is
Revenue growth compares this period's revenue to the same period a year ago (year-over-year, or YoY) or the previous quarter (quarter-over-quarter, QoQ).
Why YoY is usually preferred
QoQ comparisons are noisy for seasonal businesses. YoY compares like to like — Q4 this year against Q4 last year — and strips out predictable seasonal swings.
Decomposition
Analysts often split revenue growth into:
- Volume — selling more units
- Price — selling at higher prices
- Mix — selling more of the premium product
A company growing on price alone is in a different situation than one growing on volume.