Startup Funding Espresso -- Operating Revenue

Operating Revenue

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Operating revenue is revenue from the core business.

Non-operating revenue is revenue that comes from other sources.

For example, if the company sells a service, that revenue is considered operating revenue.

If the company sells a piece of furniture, that revenue is considered non-operating revenue.

By separating the operating from the non-operating revenue the financial metrics will be more accurate.

Operating revenue is calculated as the gross revenue minus variable costs of goods sold.

Net operating revenue is the operating revenue that takes out the operating expenses.

Investors often look for the revenue that represents the core business. 

Operating revenue is a good way to present it.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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