Revenue  Revenue is the total income generated by a business from its primary operations, typically through the sale of goods or services, before deducting any expenses. It represents the top line of a company’s income statement and serves as the starting point for calculating net income and profitability. Revenue can be categorized into: 

  • Operating Revenue: Income from core business activities. 

  • Non-operating Revenue: Income from secondary activities like interest, dividends, or asset sales. 

For subscription businesses, revenue is often tracked as Monthly Recurring Revenue (MRR) or Annual Recurring Revenue (ARR), while for retail, it’s typically reported as gross sales. Formula (Basic): Revenue = Number of Units Sold × Price per Unit    Or for service-based companies: Revenue = Number of Billable Hours × Hourly Rate    

Revenue growth trends are crucial for assessing market traction, operational scalability, and long-term business sustainability.