It is calculated by subtracting the earlier revenue from the current revenue and dividing by the earlier revenue. The comparison is often with the same quarter a year before, to avoid seasonal effects, and it is also shown from one quarter to the next. A company that grows from 80 million to 100 million dollars has 25 percent growth.
It is a key measure for younger and faster-moving companies, where investors care more about how fast sales expand than about current profit. Steady growth suggests demand for the product, while a slowdown is often the first sign of trouble.
The number needs context. Growth can come from acquisitions, price increases or currency changes and not from real new demand. A small base makes high percentages easy, and large companies find the same percentage much harder to deliver.
Look at organic growth, compare with peers, and check whether growth is accompanied by healthy margins and cash flow.