<- Business Glossary

Revenue

What is “Revenue” meaning?

Revenue is the income generated from the sale of goods or services before any expenses are deducted. It is often referred to as “sales” or “turnover” and is one of the most important metrics for evaluating a company’s financial health. Understanding revenue helps businesses gauge market demand and pricing effectiveness.

Example

“The company’s revenue for the quarter exceeded expectations, reaching $5 million from its new product line.”

How is “Revenue” used in business?

Revenue is used by businesses to measure growth, assess market conditions, and make strategic decisions. It plays a key role in forecasting future performance and planning for expansions, pricing strategies, and investment opportunities.

Pro Tip

Focus on both revenue growth and profitability; a strong revenue number does not always equate to financial success if costs are high.

Related Terms

Gross Profit, Operating Income, Earnings Before Interest and Taxes (EBIT), Profit Margin

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