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Augme Technologies, Inc. Message Board

  • spetty772002 spetty772002 Dec 3, 2012 12:07 PM Flag

    Annual growth rate

    Going forward, IMO, the company should express their growth rate in annual % terms, not sequential terms. People are programmed to hear a growth rate # and automatically revert to thinking that it's an annual growth rate because that's how people are used to growth rates generally being presented. Let's assume the company has 20% sequential growth this quarter and 15% growth for the each of next two, That would equate to a 93+% annual growth rate over 4 quarters. I understand the reason they did it this way this year, because the growth didn't actually start until Q2, however, even if they'd expressed it in annual terms, assuming 15% sequential growth rate in Q4, it would still be over 68% annual revenue growth for FY 13.

    To get the #, take 1.22% (22% sequential growth last quarter) * 1.20 (assuming 20% sequential growth rate for Q3 this quarter) * 1.15 (assuming 15% growth rate in Q4) * 1.15 (assuming 15% sequential growth rate in Q1).


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