Revenue sits at the top of the income statement and is the starting point for every profitability calculation. It is recognised when goods are delivered or services performed, not necessarily when cash arrives — under IFRS 15 and ASC 606 the contract performance obligation drives timing.
Analysts distinguish gross revenue (total billings) from net revenue (after returns, refunds and discounts). Growth rate, mix between recurring and one-off sales, and the gap between booked and recognised revenue all signal business quality.
Formula
Net Revenue = Gross Sales − Returns − Discounts
Esempio
A SaaS startup signs a CHF 120,000 annual contract in January; under IFRS 15 it recognises CHF 10,000 in revenue each month rather than the full amount upfront.