CosmicSex said:
Revenue alone doesn't tell you everything but it is critically important... because without it you literally have nothing. Depending on what your goal is, revenue is everthing. Revenue can become profits or used as a buffer if you want to invest and grow. If you are budgeting for a loss and your Rev is higher then expected... BAM! |
revenue as a stat on its own is useless though. there are tons (and I mean tons) of billion dollar companies out there with, in some cases, tens of billions of dollars of sales in revenue who profit almost nothing
obviously revenue is good in the sense of your business is potentially operating at a high scale and pushing product, but very obviously sales is all about margins and in the end whether you have high revenue or low revenue cost and profit are really what matters
sort of reminds me of the PS2 and Gamecube generation- Nintendo sold way less hardware/software than Sony during those years yet somehow managed to profit a lot more. again, revenue on its own is a useless stat without context and other numbers to look at
