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Also known as: MoM growth, monthly growth rate

Month-over-Month Growth

FoundationalMetricsFinance

Definition

Month-over-Month Growth: Month-over-month (MoM) growth measures the percentage change in a metric from one month to the next. It's commonly used for revenue, users, or other key metrics. Consistent 10%+ MoM growth is considered strong for early-stage startups.

Example Usage

“Growing from $100K to $115K MRR represents 15% month-over-month growth.”

Common Misconceptions

MoM compounds to annual growth simply. 10% MoM is actually ~214% annual, not 120%.
Consistent MoM is easy to maintain. Growth rate typically decreases as companies scale.
All months are equal. Seasonality can significantly affect MoM comparisons.

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