Business Dictionary
Revenue
Definition
Income, especially when of a company or organization and of a substantial nature.
Deep Dive
Revenue refers to the total income generated by a company from its primary business activities, such as the sale of goods or services, before any expenses are deducted. Often termed the "top line" on an income statement, it represents the money earned from regular operations and indicates the overall scale and volume of a business's commercial activities. Revenue can originate from various sources, including product sales, service fees, subscriptions, advertising, or licensing, depending on the nature of the business model.
Examples & Use Cases
- 1A SaaS company reporting $10 million in annual recurring revenue (ARR) from its software subscriptions
- 2An automobile manufacturer generating billions in revenue from global vehicle sales and after-sales services
- 3A streaming service's quarterly revenue increasing due to a surge in premium advertising and new subscribers
Related Terms
SalesGross SalesIncome