Annual revenue

Annual revenue is one of the most widely used indicators to measure company size. However, it must be interpreted in context, as it does not always directly reflect a company’s real economic or financial capacity.

What is it?

The Revenue field represents the total volume of income generated by a company in one year. It is expressed in the local currency of the country where the company is registered and, in some cases, may be complemented with reference currencies such as the euro (EUR) or the US dollar (USD).

Despite its importance as a standard metric, revenue alone does not indicate profitability or liquidity, as different industries operate with very different profit margins.

What is it for?

For data and B2B sales teams, Revenue is useful to:

• Segment companies by size in sales and marketing strategies.
• Identify potential clients with purchasing capacity.
• Establish benchmarks between companies in the same industry.
• Optimise pricing strategies and offer personalisation.

However, it is important to highlight that revenue volume does not always directly correlate with a company’s ability to purchase products and services. For more accurate analysis, revenue should be combined with other financial indicators, such as:

• Profit margin: Companies with high revenue but low margins may have limited investment capacity.
• Liquidity and solvency: High revenue combined with liquidity issues may indicate financial risk.
• Number of employees: Provides complementary insight into cost structure.
• Industry sector: Some industries require high revenue volumes to be profitable, while others generate profits with lower income levels.

Examples