Revenue is the money a business brings in from selling goods or services. It is not the same as profit. Profit is what remains after costs are subtracted. A company can have billions in revenue and still lose money. Amazon operated for years with thin or negative profits while generating enormous revenue, because it reinvested almost everything back into the business.

Revenue comes from different sources. A restaurant earns from food sales, beverage sales, and perhaps catering. A software company earns from subscriptions, one-time licenses, and support contracts. Governments also earn revenue, mainly through taxes, fees, and fines. For a government, revenue is the money available to spend on public services.

Growing revenue is the first goal of most businesses, but it is not enough on its own. A firm that grows revenue by selling below cost is digging itself a deeper hole. Investors look at revenue growth alongside margins, the percentage of revenue that becomes profit. A business with high margins can survive a revenue slump. One with thin margins may not.

Revenue types

• Operating revenue: from core business activities
• Non-operating revenue: from investments or asset sales
• Gross revenue: total sales before deductions
• Net revenue: after returns and discounts
• Government revenue: taxes, fees, fines