Revenue is the money a business brings in from selling goods or services before it pays suppliers, staff, interest or tax. Analysts often call it the top line because it appears at the top of the income statement. Strong revenue growth is encouraging only if enough of it turns into sustainable profit and cash.
Key takeaways
- Revenue is sales, not profit.
- Growing revenue with collapsing margins can still destroy value.
- Compare revenue quality: recurring, one-off, or dependent on a few customers.
- Currency moves and accounting policies can affect how revenue is reported.