Card Revenue Growth

Description:
The growth rate of revenue that a business receives from credit and debit card transactions.

See the Merchant Transaction Signals overview page for details about data sources, high-level methodology, and timeliness of this attribute.

Child attributes (and data file structure):

Column Name	Data Type	Description	Example
`end_date`	string	The time index of the features. All features in the row assume this is the final date, inclusive, of the calculation.	2020-08-31
`card_revenue_growth__3m__start_date`	string	The date that the 3-month period begins (inclusive).	2020-06-01
`card_revenue_growth__3m__rate`	float	The change in revenue in the past 3 months from the 3 months prior, expressed as a ratio, null if the business had fewer than 30 transactions during either of the compared periods.	0.1320
`card_revenue_growth__3m__rate_sa`	float	`_sa` stands for seasonally-adjusted. It’s the change in revenue in the past 3 months from the corresponding 3 months a year prior, expressed as a ratio, null if the business had fewer than 30 transactions during either of the compared periods.	0.0218
`card_revenue_growth__12m__start_date`	string	The date that the 12-month period begins (inclusive).	2019-09-01
`card_revenue_growth__12m__rate`	float	The change in revenue in the past 12 months from the 12 months prior, expressed as a ratio, null if the business had fewer than 30 transactions during either of the compared periods.	0.1338

JSON Sample:

{
        "card_revenue_growth": [
    {
            "end_date": "2020-08-31"
        "3m": {
                "start_date": "2020-08-01"
            "rate": 0.1320,
            "rate_sa": 0.218
        },
        "12m": {
                "start_date": "2020-09-01"
            "rate": 0.1338
        }
    }
  ]
}

Other notes and tips:
*Growth rate is defined as (revenue of latest period - revenue of previous period)/revenue of previous period

Growth rate can be either positive (growing trend), negative (decreasing trend), or null
A null means that there were fewer than 30 transactions in one or both of the periods used in the calculation of growth rate
When either period has less than 30 transactions, revenue of that period is null, and growth rate is also null
When the revenue of the previous time period (the denominator) is 0, the rate will also be shown as null
The 3m_rate compares the revenue of two adjacent 3-month periods
The 3m_rate for the period ending 2020-04-30 is comparing the revenues of the three months ending April 30, 2020 with the three months ending January 31, 2020
3m_rate can be dramatic for businesses that have strong seasonality (e.g., Christmas tree shops)
The 3m_rate_sa is a year-over-year comparison of the same period, removing the impact of seasonality (seasonally adjusted)
The 3m_rate_sa for the period ending 2020-04-30 is comparing the revenues of the three months ending April 30, 2020 with the three months ending April 30, 2019.
The 12m_rate_sa compares two annual (trailing twelve month) revenue periods. It’s not comparing two distinct months’ revenue
Assuming the total card revenue of 2018-05-01 to 2019-04-30 is $1000, the total card revenue of 2019-05-01 to 2020-04-30 is $1400, the 12m_rate value of the period ending at 2020-04-30 is 40%= ($1400-$1000) / $1000
Growth rate has been seen as a strong predictor of business risk
Some small businesses have a lot of variability month to month in their growth rate. In those instances, Enigma would recommend looking at how many consecutive months of positive or negative growth the business has had to smooth out the variability.