What is service revenue?

Service revenue is the income generated by a company through the provision of services to customers. This revenue is typically recognized when the services are performed and customers are invoiced for the work done. Service revenue is a key component of a company's overall revenue and can be a significant source of income for service-based businesses.

Service revenue can include a wide range of services, such as consulting, maintenance, repairs, or other types of professional services. The amount of service revenue a company generates can vary depending on factors such as the volume of services provided, the pricing of those services, and the demand from customers.

Service revenue is typically reported on a company's income statement as a separate line item under revenue. It is important for companies to accurately track and report their service revenue to assess their performance, make strategic decisions, and comply with financial reporting regulations.