GlossaryIntermediate
Revenue Growth Rate
The percentage change in a company's revenue over a period, measuring top-line business expansion.
The revenue growth rate measures the percentage change in a company's total revenue between two periods, serving as a basic gauge of top-line business expansion, independent of whether that growth is actually profitable.
Strong revenue growth without corresponding profitability (see Kaavon's "Net Margin" glossary definition) is a common and important distinction — growing fast and growing profitably are genuinely separate questions. See Kaavon's dedicated Revenue Growth Rate article for the full calculation.
Examples
- A company can show strong revenue growth while still losing money overall, if its costs are growing even faster than its revenue.
- Revenue growth rate is commonly compared against a company's own historical trend and against industry peers, not read as meaningful in complete isolation.