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.
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.
