Demystifying Metrics: Are Rising Revenues Sustainable for Salesforce and Zoom?
Each quarter, public companies report on financial and operational progress made over the last few months. Among the various metrics disclosed, a company's revenue is second to none in terms of attention received from analysts and investors.
How can we judge the quality of a company's revenue growth and if it can be maintained? Here we will answer that question using Salesforce.com (NYSE: CRM) and Zoom Video Communications (NASDAQ: ZM) as our two popular examples.
An important revenue growth consideration is whether a company is generating that growth organically. This means an organization is creating incrementally more revenue from its existing base of assets and without leaning on mergers and acquisitions (M&A) to do so.
Source Fool.com
