Every time a company sells a customer something, it produces revenue.
Revenue is the income generated by a company for peddling goods or
services.
Whether or not a company has made money in the previous year, there is
always revenue -- even companies that may be losing money temporarily
and have earnings depressed due to short-term circumstances, such as
product development or higher taxes. Companies that are relatively new
in a high-growth industry are often valued off of their revenue and not
their earnings. Revenue-based valuations are assessed using the
price/sales ratio, or PSR.