Revenue
Definition
Revenue is the total amount of money a company earns from selling its products and services. For SaaS businesses, revenue is counted upon the delivery of the service/product. Revenue that has been accumulated by a SaaS firm but still owes the customer use of its service is referred to as deferred revenue.
How is Revenue calculated?
The formula for calculating Revenue is:
Revenue = Number of sales X sale price
Example:
You have 100 customers paying for the delivery of coffee bags via a subscribe and save business model. Each coffee subscription has a $30 a month cost. This means your revenue will be $3,000 for the month. (100 X $30).
