Year-over-year (YOY) is a method of measuring growth or change by comparing one period (e.g. a month, quarter, or year) with the same period in the previous year. By doing this, it neutralizes or reduces the effects of seasonality and cyclical patterns, giving a clearer picture of long-term trends.
For example, comparing Q2 revenue this year with Q2 revenue last year allows you to see whether the business is growing, stagnating, or contracting, without being distorted by seasonal peaks or troughs.
