[GTM glossary](/glossary.txt) Year-over-year RevOps & Pipeline # Year-over-year (YoY) In short Year-over-year (YoY) is a comparison of a metric for one period against the same period one year earlier. The formula is (current period minus year-ago period) divided by year-ago period, shown as a percentage. Because it compares like with like, YoY strips out seasonal swings. GTM and finance teams use it to judge real growth in revenue, pipeline, or customer counts, and to report to boards and investors. ## How to calculate YoY growth Compare the same period in two different years, such as Q3 this year and Q3 last year. Say a team booked 1.2 million in Q3 last year and 1.5 million in Q3 this year. Growth is 300,000 divided by 1.2 million, or 25 percent. These are example numbers only. --- ## Why YoY beats QoQ for trend questions Quarter-over-quarter compares neighboring periods and is thrown off by seasonality, such as slow summers or heavy year-end buying. YoY lines up the same season, so a change reflects performance rather than the calendar. Use QoQ for momentum and YoY for trend. --- ## Where GTM teams use YoY * **Revenue and ARR:** The headline growth number for leadership. * **Pipeline created:** Shows whether demand generation is truly improving. * **Win rate and deal size:** Reveals changes in sales effectiveness over time. * **Customer counts and retention:** Tracks the health of the installed base. --- ## Common YoY mistakes * **Ignoring a low base:** Growth off a very small prior-year number looks dramatic but means little. * **One-time events:** A single large deal or a pricing change in either year can skew the comparison. * **Changed definitions:** If a metric was defined differently last year, the comparison is not valid. * **Lag for young companies:** In a fast-changing business, last year may be too different to be a useful comparison. --- ## Year-over-year FAQs **What does year-over-year (YoY) mean?** Year-over-year means comparing a metric for a period with the same period one year earlier, such as this March versus last March. It is typically expressed as a percentage change and used to measure long-term growth. **How do you calculate YoY growth?** Subtract the value from the same period last year from the current value, divide by last year value, and multiply by 100. For example, going from 100 to 120 is 20 percent YoY growth. **Why use YoY instead of QoQ?** YoY compares the same season across years, so it removes the effect of seasonal buying patterns. QoQ is better for short-term momentum, but it can make normal seasonal dips look like performance problems. **What is a good YoY growth rate for a B2B company?** There is no single good rate. It depends on company stage, market, and starting size, and smaller companies often show higher percentages off a small base. Compare against your own plan and past performance rather than a generic figure. Share term --- ## More related phrases * [Lead velocity rate](/glossary/lead-velocity-rate.txt) * [Annual run rate](/glossary/annual-run-rate.txt) * [Closing ratio](/glossary/closing-ratio.txt) ## Similar phrases * [Net new ARR](/glossary/net-new-arr.txt) Net new ARR is the change in annual recurring revenue over a period: new customer and expansion ARR, minus churned and contracted ARR. * [Month-over-month (MoM)](/glossary/month-over-month.txt) Month-over-month (MoM) compares a metric in one month with the previous month, usually as a percentage change, to show short-term momentum in pipeline, revenue, or activity. * [Revenue forecasting](/glossary/revenue-forecasting.txt) Revenue forecasting predicts how much revenue a company will earn in a future period, using pipeline, historical conversion data, and recurring revenue to guide hiring and spending decisions. * [Sales metrics](/glossary/sales-metrics.txt) Sales metrics are the measurements of sales activity, pipeline, and results, such as calls, conversion rates, and revenue, that teams use to understand performance and spot problems. * [Quarter-over-quarter (QoQ)](/glossary/quarter-over-quarter.txt) Quarter-over-quarter (QoQ) compares a metric in one fiscal quarter with the quarter immediately before it, showing short-term momentum in pipeline, bookings, or revenue.