Revenue and growth quality
Durable, diversified, repeatable growth versus purchased or incentivized growth.
Revenue and growth quality
| Concept | Explanation | |---|---| | Organic growth | Growth generated by existing operations rather than acquisitions. | | Acquired growth | Growth purchased through mergers or acquisitions. | | Volume growth | More customers, units, transactions, or usage. | | Price or mix | Growth from higher prices or a shift toward higher-value products. | | Recurring revenue | Revenue expected to repeat under subscriptions, contracts, or habitual usage. | | Customer concentration | Dependence on a small number of customers. |
High growth is more valuable when it is repeatable, diversified, supported by retention, and achieved without excessive incentives or capital.