Revenue

Revenue is the total money a company brings in from selling its products or services before any costs are subtracted. It sits on the top line of the income statement, which is why traders call it "the top line" — everything else on the statement is carved out of it.

Revenue answers a different question than profit. A company can grow revenue 40% a year while losing money on every sale, and a mature company can shrink revenue while profits rise through cost cuts. Growth investors tend to price the top line; value investors want to see it convert to cash.

Watch the revenue mix, not just the total. $1B of recurring subscription revenue is worth more than $1B of one-time hardware sales because next year's number starts from a higher floor.