Reading Financials3 min read
Revenue vs profit: the difference that trips everyone up
Revenue is what comes in. Profit is what is left after the bills. Confusing the two is the most common beginner error.
Revenue is the total money a company brings in from selling its products or services, before any costs. Profit is what remains after paying for everything: raw materials, salaries, interest and taxes.
Top line vs bottom line
Revenue sits at the top of the income statement, so it is called the top line. Profit sits at the bottom, hence the bottom line. A company can grow revenue while losing money, which is why both numbers appear side by side in every MarketByte results table.