Revenue (also called the topline) is the money your business earns from core operations—like selling products or providing services.

Profit is what’s left after your business covers all its expenses. That includes things like operating costs, taxes, and depreciation—when assets lose value over time.

Can profit be higher than revenue?

Theoretically, net profit can be higher than revenue when a company’s income through non-core business operations, such as the sale of investments, temporarily exceeds operating costs. For example, if a business earning $50,000 in revenue with operating costs of $10,000 sells assets worth $20,000, their net profit of $60,000 would exceed revenue.

How much of revenue is profit?

The amount of profit generated compared to your revenue depends on your gross margin. It subtracts the cost of revenue from net revenue to tell you how much money you keep for every dollar you make.

What is a good annual revenue?

Benchmarks for “good” annual revenue depend heavily on the growth stage for VC-backed SaaS companies. While there’s rarely a one-size-fits-all answer, here are some rough guidelines for what good annual revenue is for a startup about to raise a round: Series A: $1 million to $2 million ARR Series B: $3 million to $7 million ARR Series C: $7 million to $25 million ARR Series D and beyond: $75 million to $100+ million ARR

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