Definition
Revenue is the top line of the income statement representing total sales. It's recognized when earned, not necessarily when cash is received. Revenue growth is a key metric for growth companies. Revenue quality matters: recurring revenue is more valuable than one-time sales.
Formula
Revenue = Price × Quantity Sold (across all products/services)
Example
A SaaS company has $100M in subscription revenue (recurring) and $20M in professional services (one-time). Total revenue: $120M, but investors value the recurring portion more highly.
FAQ
What is Revenue (Sales)?
The total income from selling goods or services before any expenses.
How do you calculate Revenue (Sales)?
A common formula for Revenue (Sales) is: Revenue = Price × Quantity Sold (across all products/services)
Why is Revenue (Sales) important?
Revenue (Sales) helps investors evaluate financial statements and make more informed decisions.