Revenue
Date created: Oct 12, 2022 • Last updated: Oct 12, 2022
What is Revenue?
Revenue is defined as the income generated through a business’ primary operations. It is often referred to as “top line” and is shown at the top of an income statement.
Revenue Formula
How to calculate Revenue
If a customer signs an annual contract for $12,000 consisting of monthly payments, then the revenue for each month of that year is $1,000, and the revenue for that year is $12,000.
Start tracking your Revenue data
Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data. Choose one of the following available services to start tracking your Revenue instantly.
Revenue benchmarks
Annual Revenue Growth Rate by ARR
Annual Revenue Growth Rate by Target Customer
How to visualize Revenue?
To visualize your Revenue, you can use a summary chart to display the value and optionally compare it to a previous time period.
Revenue visualization example
Summary Chart
Revenue
Chart
Measuring RevenueMore about Revenue
Revenue is the income generated from primary business operations and activities such as product sales, rent, interest, or other income. Costs such as COGS and other expenses are not deducted from revenue. Revenue is referred to as a “top line” figure and is shown at the top of the income statement. Costs and expenses are deducted from revenue to obtain net income.
Tracking revenue can give businesses an idea of the amount of money being generated across different revenue streams, which can help growth by highlighting the best and worst performing parts of the business.
There are multiple ways of recognizing revenue, based on the accounting method used by the business. A business can either recognize revenue when payment is received, or when the business has received sales on credit. It is important to note that while all sales can be considered revenue, revenue can consist of income sources other than sales, such as non-operating revenue.
Metric Toolkit
Start tracking your Revenue data
Use Klipfolio PowerMetrics, our free analytics tool, to monitor your data. Choose one of the following available services to start tracking your Revenue instantly.