Revenue is the total amount of money a company earns from selling its products and services before any expenses are deducted.
For example, a roofing company completes 40 jobs in June, billing a combined total of $480,000. This $480,000 is its revenue for the month — before any expenses are deducted — and is the top line of its income statement for that period.
Why it matters: It is the top line and the engine of the business; without consistent revenue, all cost-cutting measures are ultimately futile.
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