Glossary·Written by a CPA
Revenue
Also called: Sales, the top line
The total amount a company earns from selling its products or services during a period, before any expenses.
Revenue is the money a company brings in from its customers, which basically just means total sales before taking out any costs. It's the first line on the income statement, which is why people call it the top line.
Under the accounting rules, revenue counts when the company actually delivers what it promised, not necessarily when the cash comes in. That's why deferred revenue and backlog exist as separate ideas.
For you, revenue growth shows whether more people are buying, or paying more. But it's only half the story, since a company can grow revenue fast while losing more money on every sale.
The catch. Revenue can be pulled forward with discounts or aggressive end-of-quarter deals, so a sudden jump followed by a slow quarter is worth a second look.
Where I talk about it
- SpaceX Q3 Earnings: Elon Says $1 Trillion a Year by 2027. Here's the Math. at 0:06
- Starbucks Stock Analysis (SBUX)- Is Starbucks Stock a Buy in 2020? at 2:45
- Fortinet Stock Crashed After Beating Earnings. Overreaction? (FTNT) at 0:00
- SoundHound Gets a Buy. Profitable AI Stock Cerence Gets a Hold. (CRNC) at 1:52
- Anthropic Just Filed for Its IPO—How Big Is the Opportunity? at 0:14
- Is NVDA Stock an URGENT BUY After the 4:1 Stock Split? (NVIDIA Stock Valuation) at 5:17
- ServiceNow Stock Fell 15% After Beating Earnings. Here's Why (NOW) at 0:00
- Anthropic IPO- Opportunity of the Year or AI Bubble? at 1:17
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This is education, not tax or investment advice. I'm a CPA, but I'm not your CPA. Full disclaimer.