KPI Category – Revenue

The term is ubiquitous and it is one of the most common metrics to be reported in Business Intelligence world. Income and Revenue denote the same and represent monetary value gained / realized through day to day operations of an organization. Revenue is the first line item to be reported in a Profit & Loss statement.

Key item to be aware here is the term “Operations“, which refers to the nature of business that an organization is involved. This could be manufacturing, trading or services and only transactions pertaining to the primary business can be considered as “Revenue” to an organization, for example, sale of an asset (e.g. Selling a company owned vehicle) is not considered revenue.

From KPI perspective there is only one “Revenue”, which is typically the revenue from Finance & Accounting perspective even though it is extensively used by Sales & Marketing teams. It is industry standard to implement the Revenue Recognition Principle and only Revenue that was “realized” is reported.

Revenue KPI(s) are nothing but the primary Revenue metric, which are broken down by various dimensions. Some examples are

  • Revenue: Main KPI for all revenue based metrics
  • Services Revenue & Support Revenue: Line of Business based classification
  • Export Revenue & Domestic Revenue: Internal business classification
  • Americas Revenue & EMEA Revenue: Geography based classification