Glossary

Gross Revenue
All the money/income generated from the sale of your product and/or service.

Net Revenue
Gross Revenue minus discounts, returns and allowances.

Recurring (Net) Revenue
Net Revenue that contractually repeats at the beginning or end of each month for a set duration.

Cost of Goods Sold (COGS)
Direct costs attributable to the production of the goods sold by your company.

Gross Profit
Net Revenue minus COGS

Gross Profit Margin
Gross Profit divided by Net Revenue

Selling, General and Administrative Expenses (SG&A)
The most common examples: advertising expense, commissions, engineering expense, marketing expense, selling expense including salaries of the salesforce, employee benefit expenses, R&D expenses, software expense, administrative office expense and other expenses related to sales but not included in cost of goods sold.