Gazelle Company

DEFINITION of 'Gazelle Company'

A high-growth company that is increasing its revenues by at least 20% annually for four years or more, starting from a revenue base of at least $1 million. This growth pace means that the company has effectively doubled its revenues over a four-year period. As gazelle companies are characterized by their rapid growth pace, rather than their absolute size, they can range in size from small companies to very large enterprises.




BREAKING DOWN 'Gazelle Company'

David Birch's identification of gazelle companies followed from his 1979 report titled "The Job Generation Process," wherein he identified small companies as the biggest creators of new jobs in the economy. Birch estimated that gazelles accounted for only 4% of all U.S. companies, but accounted for 70% of all new jobs. Birch noted that the growth pace of gazelle companies far outpaced that of the Fortune 500 "elephants" and Main Street "mice."

RELATED TERMS
  1. Revenue Generating Unit - RGU

    An individual service subscriber who generates recurring revenue ...
  2. Fortune 1000

    A list created by Fortune magazine detailing the 1,000 largest ...
  3. Revenue Recognition

    An accounting principle under generally accepted accounting principles ...
  4. Top Line

    A reference to the gross sales or revenues of a company, or an ...
  5. Ancillary Revenue

    Revenue generated from goods or services that differ from or ...
  6. Hunting Elephants

    The practice of targeting large companies or customers.
Related Articles
  1. Investing

    Gazelle Recycles Smart Phones For Green Profits (EBAY, AAPL)

    Founded in 2006, Gazelle in one of several new companies that buy used, broken, or outdated mobile phones and other electronics from consumers.
  2. Investing

    Revenue Projections Show Profit Potential

    Examining how a company makes money can offer clues about its earnings potential.
  3. Trading

    Stock Analysis Basics: How To Forecast Revenue and Growth

    Forecasted revenue and growth projections are important components of security analysis, leading to a stock’s future worth.
  4. Investing

    S&P 500 Index: A Revenue Case Study

    Discover the breakdown of aggregate total revenue of S&P 500 companies, including how much revenue is earned by country, industry and geographic location.
  5. Investing

    Financial Statements: Revenue

    By David Harper (Contact David)Revenue recognition refers to a set of accounting rules that governs how a company accounts for its sales. Many corporate accounting scandals have started with ...
  6. Markets

    S&P 500: Companies Continue to Report Revenues Below Estimate

    Discover why companies are missing revenue estimates but clearing their earnings estimates, and what that might mean for an inflated market.
  7. Investing

    What's Marginal Revenue?

    In microeconomics, marginal revenue is the additional revenue generated by increasing sales revenue by one unit. Another way of saying this is that the marginal revenue is the revenue generated ...
  8. Managing Wealth

    Is Growth Always A Good Thing?

    Getting big quickly looks good, but companies can get into trouble when they do it too fast. Find out how to spot this trouble.
  9. Investing

    4 Tips to Evaluate Growth Companies (KO, AAPL)

    Discover the best metrics for stock investors to utilize when selecting and evaluating the best opportunities in growth investing.
  10. Investing

    Comparing Bottom Line And Top Line Growth

    Both figures can determine a company’s financial strength, but they are not interchangeable.
RELATED FAQS
  1. How do companies calculate revenue?

    Revenue is the amount of money a company receives in exchange for its goods and services. The revenue received by a company ... Read Answer >>
  2. What is the difference between earnings and revenue?

    Understand how a company makes revenue and how it makes earnings. Learn the difference between revenue and earnings and how ... Read Answer >>
  3. What level of annual growth is common for companies in the Internet sector?

    Learn what level of annual growth is common for companies in the Internet sector in terms of revenue growth and earnings ... Read Answer >>
  4. What are the advantages and disadvantages of horizontal integration?

    Understand the criteria for recognizing revenue recognition. Learn the principles behind when a company can consider its ... Read Answer >>
  5. For a company, is it more important to lower costs or increase revenue?

    Examine the question of whether a company's desire for increased profitability is better served by focusing on cutting costs ... Read Answer >>
  6. How is deferred revenue treated under accrual accounting?

    Learn deferred revenue and its treatment under accrual accounting and why various revenue recognition methods result in different ... Read Answer >>
Hot Definitions
  1. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center