Spot trends in company growth metrics and stay in front of the market with the Signal Alerts feature in the Simliarweb Stock Intelligence solution.
Signal Alerts help investors identify sharp changes in company growth rates by monitoring several key growth metrics or signals. The tool identifies situations where the Year-over-Year (YoY) growth of a signal in the last month is significantly higher (or lower) than the average YoY growth of that Signal in the past six months.
A rate of change triggers the Signal Alert when the absolute value of the Z-score of the last YoY change is greater than the defined threshold of 1.75. The threshold represents an 8% probability of finding an inflection point, assuming a normal distribution of YoY changes of relevant signals.
There are five types of alerts:
| * Growth is accelerating (the signal grows much faster than in the past six months) |
| * Decline is accelerating (the signal is declining much faster than in the past six months) |
| * Decline is slowing down (the signal is declining much slower than in the past six months) |
| * Growth is reversing (the signal was growing in the past six months but is now declining) |
| * Decline is reversing (the signal was declining in the past six months but is now growing) |
The significance is determined by the last measurement's Z-score, also known as the standard score. The Z-score is defined as the number of standard deviations above or below the mean.
Example of a Signal Alert
The table below shows the Total Reach growth signal for a company for the first six months of 2021.
See that the average YoY growth in Total Reach is 24.70%, and the standard deviation is 9.84%. Calculating the Z-Score of the last change yields 1.97, which is greater than the threshold of 1.75. Thus, the latest change in Total Reach creates the Signal Alert.
|
January |
February |
March |
April |
May |
June |
|
|---|---|---|---|---|---|---|
|
2020 |
833 |
963 |
652 |
834 |
787 |
833 |
|
2021 |
1000 |
1200 |
800 |
1000 |
920 |
1200 |
|
YoY Growth |
20.05% |
24.61% |
22.70% |
19.90% |
16.90% |
44.06% |
|
Average YoY Growth: 24.70% |
Standard Deviation: 9.84% |
Z-Score:1.97 |
Indeed, if we look at the growth chart, we can see that growth in the last month stands out from the normal growth and represents a potential inflection point in the company’s growth.
Q. What are the Signals being measured?
A. The tool monitors several signals. The signals available may depend on the stock being viewed.
Audience Growth - Metrics indicating the brand’s strength, recognition, and audience growth.
Marketing Spend - Metrics indicating the company's digital marketing efforts and marketing expenses.
Business Efficiency - Metrics indicating how efficient the company is in its digital operations.
Revenue Growth - Signals indicative of the company's reported revenue KPIs
Customer Growth - Signals indicative of growth in the number of the company's customers
Employee Growth - Signals indicating growth in the company’s human capital
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