Gross Revenue
Gross revenue is the total amount of income generated by a company from its sales or services before any deductions for returns, allowances, discounts, or costs. It reflects the total sales activity and market reach of the business, providing a broad measure of its success in generating income. Gross revenue is the top line on the income statement and is critical for evaluating overall business performance, growth trends, and market positioning.
Example
A software company generates $2 million in gross revenue from its subscription services, showing the total sales before deducting any customer discounts or refunds.
Key points
• Total income generated from sales before any deductions.
• Represents the top line of the income statement.
• Important for assessing sales performance and business growth.