Spot trends in company growth metrics and stay in front of the market with the Standout Inflections feature in Simliarweb Investor Intelligence solution.

Standard_Inflections.png

Using the Standout Inflections to Monitor Growth

The Standout Inflections feature in Similarweb Investor Intelligence solutions helps investors identify sharp changes in company growth rates by monitoring several key growth metrics, or Signals. The tool identifies cases 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 6 months.

A rate of change is considered a Standout Inflection 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 5 types of inflections:

* Growth is accelerating (the signal grows much faster than in the past 6 months)
* Decline is accelerating (the signal is declining much faster than in the past 6 months)
* Decline is slowing down (the signal is declining much slower than in the past 6 months)
* Growth is reversing (the signal was growing in the past 6 months, but is now declining)
* Decline is reversing (the signal was declining in the past 6 months, but is now growing)

Calculating a Standout Inflection

The significance is determined by the Z-score, also known as the standard score, of the last measurement.  The Z-score is defined as the number of standard deviations above or below the mean.

Example of a Standout Inflection

In the table below, we look at 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 is considered a Standout Inflection.

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 regular growth, and represents a potential inflection point in the company’s growth.

YoYGrowth_Chart.png

FAQs

Q. What are the Signals being measured?

A. The tool monitors several signals to identify standout inflections. The signals available may depend on the stock being viewed.

Audience Growth - Metrics indicating 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 company's customers

Employee Growth - Signals indicating growth in the company’s human capital

Was this article helpful?
1 out of 1 found this helpful