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The total amount of money generated by a company from its business activities (sales of goods or services) before any expenses are deducted.
Also called the "top line" (it appears at the top of the income statement), revenue is the starting point for measuring a company's financial performance. Revenue growth is one of the most closely watched metrics for growth companies, particularly in technology. Investors distinguish between organic revenue growth (from existing operations) and inorganic growth (from acquisitions). Revenue recognition rules (ASC 606 in the U.S.) govern when and how companies can record revenue, which is important because aggressive revenue recognition has been at the heart of several accounting scandals.