{
  "rogueId": "sales.growth_rate_yoy",
  "slug": "growth_rate_yoy",
  "domain": "sales",
  "defaultLabel": "Growth Rate (YoY)",
  "description": "Year-over-year percentage growth in ARR (or recognized revenue, if explicitly anchored) — comparing the current period to the equivalent period 12 months prior. The single most-watched investor metric and the largest single driver of SaaS valuation multiples. Common pitfall: comparing to the prior quarter (QoQ) and reporting it as \"growth rate\" — boards and investors mean YoY unless explicitly noted otherwise. Anchored to KBCM/Sapphire SaaS Survey 2024 §YoY ARR Growth for cross-company benchmarking.",
  "fieldType": "percentage",
  "unit": "%",
  "maturity": "general",
  "suggestedForStages": [
    "seriesA",
    "seriesB",
    "seriesC",
    "public"
  ],
  "defaultOwningFunctions": [
    "Finance",
    "Sales"
  ],
  "stageRelevance": {
    "seriesA": "core",
    "seriesB": "core",
    "seriesC": "core",
    "public": "core"
  },
  "definitionSource": {
    "tier": "published",
    "sourceName": "KBCM/Sapphire SaaS Survey 2024 (15th Annual)",
    "sourceUrl": "https://www.cfodesk.co.il/wp-content/uploads/2024/10/2024_kbcm_sapphire_saas_survey.pdf",
    "sectionRef": "YoY ARR Growth",
    "publicationDate": "2024-09-01",
    "attributionNotice": null
  },
  "benchmark": {
    "p25": 12,
    "median": 19,
    "p75": 27,
    "unit": "%",
    "sourceName": "KBCM/Sapphire SaaS Survey 2024 (15th Annual)",
    "sourceYear": "2024",
    "higherIsBetter": true
  },
  "formula": "YoY Growth Rate = ((ARR at period close − ARR 12 months prior) / ARR 12 months prior) × 100. State the underlying metric explicitly (ARR vs Recognized Revenue) — they diverge meaningfully for sub-scale businesses. For quarters, use end-of-quarter ARR vs end-of-same-quarter-prior-year.",
  "whyItMatters": "Direct input to public-comparable valuation multiples (EV / NTM ARR multiples are sliced by growth band). Boards use it to triangulate stage-appropriate pace and to flag deceleration early.",
  "interpretationGuidance": "Per KBCM/Sapphire SaaS Survey 2024 §YoY ARR Growth, median private-SaaS growth bands by ARR scale: $5–10M ARR median ~55–70%, $10–25M ARR ~40–55%, $25–50M ARR ~35–45%, $50M+ ARR ~25–35%. Growth decelerating > 30 percentage points YoY at any ARR scale is the most actionable board warning signal — usually requires either pipeline-coverage diagnosis or product-investment reallocation.",
  "relatedKpiIds": [
    "sales.arr",
    "sales.new_business",
    "sales.expansion",
    "sales.churn_arr",
    "operations.rule_of_40",
    "sales.gross_margin"
  ]
}