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Also known as: sales, top line

Revenue

FoundationalFinanceMetrics

Definition

Revenue: Revenue is the total income generated from selling products or services before any expenses are deducted. For subscription businesses, revenue is often measured as MRR or ARR. Revenue growth rate is a key metric for evaluating startup performance.

Example Usage

“We reached $1M in revenue within 12 months of launch, growing 20% month-over-month.”

Common Misconceptions

Revenue equals profit. Profit is revenue minus all expenses.
Revenue is cash received. Revenue is recognized when earned, regardless of payment timing.
Growing revenue is all that matters. Profitable, sustainable revenue matters most.

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