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

    The amount of money that a company actually receives during a ...
  2. Growth Firm

    A company that is growing at a rapid pace compared to its peers ...
  3. Revenue Generating Unit - RGU

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

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

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

    A reference to the gross sales or revenues of a company, or an ...
Related Articles
  1. Entrepreneurship

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    Founded in 2006, Gazelle in one of several new companies that buy used, broken, or outdated mobile phones and other electronics from consumers.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

    Revenue Analyst: Job Description & Average Salary

    Learn what a revenue analyst does and what skills are needed to succeed in the position. Determine the education and experience required to work in this field.
  3. Investing Basics

    Revenue Projections Show Profit Potential

    Examining how a company makes money can offer clues about its earnings potential.
  4. Charts & Patterns

    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.
  5. Professionals

    Revenue Analyst: Career Path & Qualifications

    Learn more about the duties of a revenue analyst and the qualifications needed for the position, along with the career path for these professionals.
  6. Professionals

    Revenue Recognition

    CFA Level 1 - Revenue Recognition. Learn about revenue recognition and the importance of the matching principle. Includes calculations and principles of revenue recognition.
  7. Options & Futures

    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 ...
  8. 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 ...
  9. Fundamental Analysis

    DCF Analysis: The Forecast Period & Forecasting Revenue Growth

    By Ben McClure Contact Ben The Forecast Period The first order of business when doing discounted cash flow (DCF) analysis is to determine how far out into the future we should project cash flows. ...
  10. Fundamental Analysis

    Earnings Quality, the Facebook Example

    When judging Facebook's quality of earnings it is important to understand the various sources of revenue and trends in those sources.
RELATED FAQS
  1. What types of revenue are taxable?

    Learn about all the various types of taxable corporate revenue and how different revenues are designated and differentiated ... Read Answer >>
  2. 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 >>
  3. 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 >>
  4. What is the difference between revenue and sales?

    Learn to distinguish between a company's revenue and its sales, and see why the distinction is important when analyzing a ... Read Answer >>
  5. 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 >>
  6. 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 >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center