Revenue Growth¶

Definition¶

Revenue Growth measures the increase (or decrease) in revenue over a specific period, typically expressed as a percentage. It tracks how well a business is expanding its revenue streams.

Description¶

Revenue Growth is a foundational KPI for market momentum and business scalability, reflecting how total revenue expands or contracts over time as a result of acquisition, retention, pricing, and upsell strategies.

Its relevance evolves across growth stages:

In early-stage SaaS, it signals product-market fit and channel viability
In scale-up or enterprise, it validates expansion efficiency and monetization models
In DTC or consumer platforms, it highlights seasonal demand patterns and repeat purchase strength

A positive growth rate means your GTM motion is compounding, while flat or declining growth often flags issues with churn, saturation, or weak differentiation. Segmenting revenue growth by region, segment, cohort, or product line unlocks targeted insights to refine strategies or double down on winning motions.

Revenue Growth informs:

Strategic decisions, like market expansion, hiring plans, and pricing adjustments
Tactical actions, such as campaign investment shifts or product packaging updates
Operational improvements, including lead qualification flows and customer success touchpoints
Cross-functional alignment, by giving execs, finance, GTM, and product a shared signal of company-wide momentum

Key Drivers¶

These are the main factors that directly impact the metric. Understanding these lets you know what levers you can pull to improve the outcome

New Customer Acquisition Volume and Value: Strong top-of-funnel motion is the starting point for growth.
Customer Expansion Velocity: More upsells = more recurring revenue.
Retention and Churn: High churn eats into growth — and can create negative net growth.

Improvement Tactics & Quick Wins¶

Actionable ideas to optimize this KPI, from fast, low-effort wins to strategic initiatives that drive measurable impact.

If growth is lagging, analyze revenue by cohort — identify drop-offs in retention or upsell cycles.
Add expansion nudges tied to usage milestones (“You’ve hit your limit — unlock more seats”).
Run campaigns targeting win-back or lapsed customers with new pricing or features.
Refine GTM plays by segment — SMB vs. enterprise may have very different growth levers.
Partner with finance and sales to align on net vs. gross growth targets and reporting.

Required Datapoints to calculate the metric
- Current Period Revenue: Revenue generated during the current measurement period.
- Previous Period Revenue: Revenue generated during the prior measurement period for comparison.
Example to show how the metric is derived

An e-commerce business earns $500,000 in Q1 and $600,000 in Q2:
- Revenue Growth = [(600,000 – 500,000) / 500,000] × 100 = 20%

Formula¶

Formula

\[ \mathrm{Revenue\ Growth} = \left( \frac{\mathrm{Current\ Period\ Revenue} - \mathrm{Previous\ Period\ Revenue}}{\mathrm{Previous\ Period\ Revenue}} \right) \times 100 \]

Data Model Definition¶

How this KPI is structured in Cube.js, including its key measures, dimensions, and calculation logic for consistent reporting.

Revenue

cube('Revenue', {
  sql: `SELECT * FROM revenue`,

  measures: {
    currentPeriodRevenue: {
      sql: `current_period_revenue`,
      type: 'sum',
      title: 'Current Period Revenue',
      description: 'Total revenue generated during the current measurement period.'
    },
    previousPeriodRevenue: {
      sql: `previous_period_revenue`,
      type: 'sum',
      title: 'Previous Period Revenue',
      description: 'Total revenue generated during the prior measurement period for comparison.'
    },
    revenueGrowth: {
      sql: `((current_period_revenue - previous_period_revenue) / previous_period_revenue) * 100`,
      type: 'number',
      title: 'Revenue Growth',
      description: 'Percentage increase or decrease in revenue over a specific period.'
    }
  },

  dimensions: {
    id: {
      sql: `id`,
      type: 'number',
      primaryKey: true,
      title: 'ID',
      description: 'Unique identifier for each revenue record.'
    },
    date: {
      sql: `date`,
      type: 'time',
      title: 'Date',
      description: 'Date of the revenue record.'
    }
  }
});

Note: This is a reference implementation and should be used as a starting point. You’ll need to adapt it to match your own data model and schema

Positive & Negative Influences¶

Negative influences

Factors that drive the metric in an undesirable direction, often signaling risk or decline.
- Customer Churn Rate: A high churn rate negatively impacts revenue growth by reducing the customer base and recurring revenue.
- Customer Acquisition Cost: Increased costs in acquiring new customers can negatively affect revenue growth by reducing profit margins.
- Discount Rate: Higher discount rates can negatively impact revenue growth by reducing the overall revenue per transaction.
- Market Saturation: A saturated market can limit revenue growth by reducing the potential for acquiring new customers.
- Operational Costs: Rising operational costs can negatively impact revenue growth by decreasing net profit margins.
Positive influences

Factors that push the metric in a favorable direction, supporting growth or improvement.
- New Customer Acquisition Volume: An increase in the number of new customers directly boosts revenue growth by expanding the customer base.
- New Customer Acquisition Value: Higher value from new customers contributes to revenue growth by increasing the average revenue per customer.
- Customer Expansion Velocity: Faster upsell rates enhance revenue growth by increasing the revenue generated from existing customers.
- Customer Retention Rate: Higher retention rates support revenue growth by maintaining a stable revenue stream from existing customers.
- Average Transaction Value: An increase in the average transaction value directly contributes to revenue growth by raising the revenue per sale.

Involved Roles & Activities¶

Involved Roles

These roles are typically responsible for implementing or monitoring this KPI:

Executive
Finance
Product Marketing (PMM)
Sales Manager
Activities

Common initiatives or actions associated with this KPI:

Sales Enablement
Lead Gen
Revenue Management
Retention Strategies
Market Expansion

Funnel Stage & Type¶

AAARRR Funnel Stage

This KPI is associated with the following stages in the AAARRR (Pirate Metrics) funnel:

Revenue
Type

This KPI is classified as a Lagging Indicator. It reflects the results of past actions or behaviors and is used to validate performance or assess the impact of previous strategies.

Supporting Leading & Lagging Metrics¶

Leading

These leading indicators influence this KPI and act as early signals that forecast future changes in this KPI.
- Product Qualified Leads: Product Qualified Leads (PQLs) are strong leading indicators for Revenue Growth as they represent users showing high intent and strong engagement. A consistent increase in PQLs signals a likely future boost in conversions and revenue, making it a key metric for forecasting sales pipeline health and expansion.
- Deal Velocity: Deal Velocity measures how quickly deals move through the sales pipeline. Faster deal velocity usually leads to quicker revenue realization and growth since it indicates efficient sales processes and reduced sales cycle times, directly impacting the pace at which revenue accumulates.
- Monthly Active Users: Monthly Active Users (MAU) is a forward-looking engagement metric. Growth in MAUs often precedes increases in paid conversions and upsells, fueling future revenue growth by expanding the pool of potential and repeat purchasers.
- Pipeline Value: Pipeline Value captures the total value of open sales opportunities. A growing pipeline is a strong predictor of future revenue growth, as it reflects the potential for deal closures and expansion, feeding directly into realized revenue.
- Customer Loyalty: Customer Loyalty is a leading indicator of recurring revenue and expansion potential. High loyalty rates suggest customers are more likely to renew, upgrade, or recommend, all of which ultimately drive sustainable revenue growth.
Lagging

These lagging indicators confirm, quantify, or amplify this KPI and help explain the broader business impact on this KPI after the fact.
- Net Revenue Retention: Net Revenue Retention (NRR) quantifies the percentage of recurring revenue retained from existing customers, factoring in expansions and churn. High NRR amplifies Revenue Growth, confirming the business’s ability to retain and expand customer revenue over time.
- Contract Renewal Rate: Contract Renewal Rate measures customer retention and directly contributes to Revenue Growth by ensuring continuity in recurring revenues and reducing churn-driven revenue losses.
- Conversion Rate: Conversion Rate captures the effectiveness of turning prospects into paying customers. Higher conversion rates confirm the overall health of the funnel and validate demand generation strategies, leading to higher realized revenue.
- Expansion Revenue Growth Rate: Expansion Revenue Growth Rate shows how effectively current customers are upsold or cross-sold. Increases here directly boost Revenue Growth, as it reflects growing revenue from the existing base rather than net new acquisition.
- Average Revenue Per Account: Average Revenue Per Account (ARPA) quantifies the typical revenue contribution per customer. Growth in ARPA confirms the success of pricing, upselling, and cross-selling strategies, providing a concrete measure of revenue expansion at the account level.