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Also known as: YoY growth, annual growth rate

Year-over-Year Growth

FoundationalMetricsFinance

Definition

Year-over-Year Growth: Year-over-year (YoY) growth compares a metric to the same period in the prior year, eliminating seasonality effects. It's the standard for reporting company growth and is what investors focus on for evaluating performance.

Example Usage

“Our December revenue of $500K compared to $300K last December represents 67% year-over-year growth.”

Common Misconceptions

YoY is just MoM times 12. YoY compares the same month, accounting for seasonality.
Faster YoY is always better. At scale, slower YoY is expected; absolute growth matters too.
One strong YoY quarter is enough. Investors look at multiple quarters of YoY performance.

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