The growth metric for the underlying trend. YoY cancels out seasonality, holidays, and short-term noise to show what's actually happening to the business over time.
Definition
YoY Growth (Year-over-Year) - the percentage change in a metric from one period to the same period a year ago. Reflects long-term trajectory and cancels out seasonality.
Formula
YoY Growth = (This Period − Same Period Last Year) ÷ Same Period Last Year × 100%
Common uses
- Strategic planning - the trend that informs longer-term decisions
- Board updates - the standard headline growth metric
- Investor reporting - what acquirers and lenders ask about
Watch out
A YoY comparison against an unusual prior period (record month, one-off event) will distort the picture either direction. Always sanity-check the comparison base.