Quarterly Revenue Growth

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DEFINITION of 'Quarterly Revenue Growth'

An increase of a company's sales when compared to a previous quarter's revenue performance. The current quarter's sales figure can be compared on a year-over-year basis or sequentially. This helps to give analysts, investors and participants an idea of how much a company's sales are increasing over time.

BREAKING DOWN 'Quarterly Revenue Growth'

When looking at a company's quarterly or annual financials, it is not enough to just look at the revenue for the current period. When investing in a company, an investor wants to see it grow or improve over time. Looking at the financials in comparison to a previous quarter will give participants a much better idea of how well a company is doing.

For example, if Exxon Mobil generated $91.3 billion in revenue during its fourth quarter of 2005 and $82.2 billion in the third quarter that year, the company saw quarterly revenue growth of 11% sequentially. If Exxon Mobil generated $80.2 billion in the fourth quarter of 2004, the company would have seen its revenue increase 13.8% on a year-over-year basis.

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