What is a good benchmark for year-over-year revenue growth?
Asked 3 years ago
I am wanting to use the YOY approach to analyze my monthly revenue growth, however, I am not actually sure what a good benchmark is for this growth. I know that profitability goals shouldn't be set comparatively to other companies, as all companies perform differently based on a variety of factors, but I am curious as to what works for others so that I can begin decerning what would work for me.
Abeeha Qasmi
Sunday, October 31, 2021
You are correct. You should not compare your growth benchmark with different companies. However, an average growth benchmark for a good company is between 15-45% to give you an idea.
According to the Pacific Crest SaaS survey, companies with more than $2 million annual revenue often lie on the higher end of the average spectrum. If your growth rate lies between the average or more than this average limit, your company has a reasonable growth rate.
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