Revenue evolution
Revenue evolution is a key indicator for analysing a company’s growth over time. It is expressed as a year-on-year percentage change, allowing you to identify whether a company is expanding, remaining stable, or experiencing a contraction in revenue.
What is it?
The RevenueEvolution field represents the percentage change in a company’s annual revenue (Revenue) compared to the previous year. It is calculated using the following formula:
[ \text{RevenueEvolution} = \frac{\text{Revenue}{\text{current year}} - \text{Revenue}{\text{previous year}}}{\text{Revenue}_{\text{previous year}}} \times 100 ]
A positive value indicates revenue growth, while a negative value reflects a decrease in the company’s turnover.
What is it for?
For data and B2B sales teams, RevenueEvolution is a key indicator because:
- Growing companies are often more open to new investments in products and services that help them scale.
- It allows the identification of potential clients in an expansion phase, who may require technology, infrastructure, or consulting solutions.
- It helps prioritise commercial strategies, focusing on companies with sustained growth.
- It supports commercial risk assessment, identifying companies in decline that may have lower purchasing capacity or financial instability.
However, it is important to note that rapid growth does not always mean financial stability. Companies with high growth rates may be operating with tight margins, high debt, or business models that are not yet profitable.
Data interpretation
RevenueEvolution values can be classified as follows:
| Variation (%) | Interpretation |
|---|---|
| +20% or more | Accelerated growth, possible aggressive expansion |
| +5% to +20% | Stable and sustained growth |
| 0% to +5% | Moderate growth or stability |
| 0% to -5% | Slight contraction, possible market adjustment |
| -5% to -20% | Significant revenue loss, possible restructuring |
| -20% or more | Company at financial risk or facing serious issues |
Industry context also influences interpretation. In traditional sectors, 5% annual growth may be considered strong, while in technology sectors much faster growth is often expected.
Examples
No data.