Analysis

Revenue: Definition

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Simple Definition

Total money a company brings in before paying any expenses.

Why It Matters

Revenue is the top line - how much a company sold before any costs. Apple's $380+ billion annual revenue makes it one of the largest companies in the world. Revenue growth is often the first thing investors check. A company can cut costs to boost short-term profits, but sustainable revenue growth is harder to fake and signals real demand.

Key Points

  • Revenue ≠ Profit. A company can have huge revenue and still lose money (see: many tech startups)
  • 'Top line' growth means revenue growth; 'bottom line' growth means profit growth
  • Recurring revenue (subscriptions, services) is more valuable than one-time sales - it's more predictable

Related Terms

Common Questions

Total money a company brings in before paying any expenses. Revenue is the top line - how much a company sold before any costs. Apple's $380+ billion annual revenue makes it one of the largest companies in the world.

Revenue is the top line - how much a company sold before any costs. Apple's $380+ billion annual revenue makes it one of the largest companies in the world. Revenue growth is often the first thing investors check. A company can cut costs to boost short-term profits, but sustainable revenue growth is harder to fake and signals real demand.

Revenue ≠ Profit. A company can have huge revenue and still lose money (see: many tech startups)

'Top line' growth means revenue growth; 'bottom line' growth means profit growth

Recurring revenue (subscriptions, services) is more valuable than one-time sales - it's more predictable