Year-over-year growth is the comparison of one revenue metric over a period with the same metric over the same period from the previous year. The period is typically a month or a quarter
Year-on-year comparison is an effective way to assess real growth. It adjusts for seasonality and focuses on the long term trend. This KPI helps you to get a big picture idea of your business performance.
If a business' sales revenue grows by 20 percent over the Christmas period this year, it seems good for business. However, if it grew by 35 percent last year, the business actually performed worse than previous year.