Revenue is the total amount of money a company earns from its business activities before subtracting any costs or expenses. It’s often referred to as the “top line” because it appears at the top of an income statement.

Revenue is an indicator of business performance and growth, but it doesn’t account for profitability, unlike gross margin and net income.

Types of revenue include:

• Product revenue - from physical or digital product sales
• Service revenue - from consulting, subscriptions, or support
• Recurring revenue - from ongoing contracts like SaaS subscriptions
• One-time revenue - from individual transactions or projects

Example:

If a software company charges $100/month and has 500 paying customers, its monthly revenue is: $100 × 500 = $50,000