Year-over-Year (YoY) growth is a measure of the change in revenue over a period of time when compared against the same period in a previous year.
YoY is commonly used by financial analysts and revenue teams to compare how a company is growing. Accelerated growth or a slowdown in the YoY measure can be a strong predictor of future business performance.
Unlike Month-over-Month or Quarter-over-Quarter outlook, the YoY indicator is not affected by short term fluctuations in a business. It’s generally considered amore complete and stable picture of a business’s performance.
YoY growth can be used to generate financial models, resource allocation, and predict sales forecasts.