What is Revenue?
Revenue (often called the “top line”) is the total monetary value collected from selling goods or services over a specified period.
Gross Revenue vs. Net Revenue
Financial reporting distinguishes between two primary revenue layers:
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Gross Revenue: Total dollar amount of customer purchases before any deductions: $$\text{Gross Revenue} = \sum (\text{Line Item Quantities} \times \text{Unit Prices})$$
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Net Revenue: Revenue remaining after deducting refunds, discounts, and order cancellations: $$\text{Net Revenue} = \text{Gross Revenue} - \text{Discounts} - \text{Refunds} - \text{Returns}$$
Developer Takeaway
Analytics Accuracy: When sending purchase events to analytics platforms (e.g. Google Analytics 4, Meta Pixel), explicitly pass net subtotal values excluding sales tax and shipping fees unless reporting total transaction value.