Revenue
Revenue is the total income a company generates from selling goods or services before any expenses are deducted. Also called sales or top-line, revenue is the starting point for calculating profitability. Growing revenue is essential for long-term business success.
Understanding the Concept
• Top line of the income statement (before costs) • Revenue growth rate indicates business momentum • Not the same as profit (doesn't account for expenses) • Can be one-time or recurring (subscription models preferred)
Real-World Example
Netflix reports $8.8B quarterly revenue from 230 million subscribers paying an average of $12.75/month. This recurring subscription revenue is highly predictable compared to a movie studio's lumpy box office revenue. Investors pay premium valuations for predictable, recurring revenue streams.
How Strykr Helps
Strykr's AI assistant helps you understand and apply Revenue concepts to your trading. Get personalized guidance and real-time market analysis to make better decisions.
Try Strykr Free