# Quarterly Revenue Growth

## What is ‘Quarterly Revenue Growth’

When comparing a company’s revenue performance from one quarter to the next, quarterly revenue growth is defined as a rise in sales. The sales number for the current quarter can be compared to the same period last year or to the same quarter this year. This provides analysts, investors, and participants with a better understanding of how much a company’s revenues are expanding over a period of time.

## Explaining ‘Quarterly Revenue Growth’

The revenue for the present time is not sufficient when analyzing a company’s quarterly or annual financials, and this is especially true for public companies. When an investor makes an investment in a firm, he or she hopes to see it develop or improve over time. Taking a look at the financials in relation to the prior quarter will provide participants a much better understanding of how a firm is performing financially.

In the case of Exxon Mobil, if the firm made \$91.3 billion in sales during its fourth quarter of 2005 and \$82.2 billion in revenue during its third quarter of the same year, the company saw sequential revenue increase of 11 percent. In the fourth quarter of 2004, if Exxon Mobil achieved \$80.2 billion in sales, the company’s revenue would have increased by 13.8 percent when compared to the same period in 2003.

## ‘Quarterly Revenue Growth’ FAQ

### How do you calculate average quarterly revenue?

A unit's or user's average revenue may be calculated by dividing the total amount of income received during a certain time period by the number of units or users received within the same time period.

### How do you calculate revenue growth percentage?

Calculate the net sales of the previous period by subtracting them from the net sales of the current period. Then divide the figure by the net sales for the previous period to arrive at a percentage. To get the percentage increase in sales, multiply the figure by 100.