What is Revenue?
Revenue (also called sales or turnover) is the total money a company earns from its primary business activities before any expenses. It's the top line of the income statement. Reported quarterly. Often broken down by segment, geography, or product to give visibility into growth drivers. Revenue growth is one of the most-watched metrics — particularly for growth companies where earnings may not yet be meaningful.
Why it matters for investors
Sustainable profit growth requires revenue growth. A company that cuts costs to grow earnings without revenue growth is on a finite path. Revenue beats/misses vs. analyst estimates often move stocks more than EPS surprises, especially for growth companies. The "Rule of 40" for SaaS companies: revenue growth % + free cash flow margin % should exceed 40.