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FINANCIAL TERMS

Revenue

Description

Revenue means the money a company earns from selling goods or services. In simple terms, revenue is the money coming into a business before costs and expenses are subtracted. Revenue is important because it shows how much demand there is for a company’s products or services. When revenue rises, it may mean the company is selling more, charging higher prices, or both. For example, if a company sells 1 million products for $10 each, its revenue is $10 million. Revenue is not the same as profit. Revenue is the money a company brings in, while profit is what remains after costs and expenses are paid.