About revenue

This is for:

Developer

Some charts on the dashboards in the Advanced Reports (platform-ca | platform-eu | platform-au) page of the Coveo Administration Console use the Revenue metric.

Revenue is calculated by adding up the income generated from the sale of products in every purchase event.

The Revenue metric is calculated in two distinct ways: net and gross revenue. All reported revenue metrics are shown using the gross revenue (unless otherwise stated), except for the Top selling products charts, which display net revenue figures.

Net revenue

Net revenue represents the revenue attributed to each product within a purchase event. It doesn’t include taxes, shipping costs, or discounts.

It’s calculated by multiplying the product’s base price by the quantity of units sold, as depicted in the following formula:

product net revenue = product base price * quantity

Gross revenue

Gross revenue represents the revenue attributed to each product within a purchase event, which includes taxes, shipping costs, and discounts.

The total taxes, shipping costs, and discounts for a given product are calculated based on a weighted average as outlined in the following formula:

(transaction total/transaction total net revenue) * product net revenue

Example

To illustrate how the net and gross revenue metrics are calculated, consider the following example:

A customer makes one purchase containing three different products:

Product Base price Quantity Product net revenue

A

$25

1

$25

B

$10

4

$40

C

$40

3

$120

The transaction’s total net revenue is $185, but the total amount of the transaction logged by the associated purchase event is $200, which includes $15 in taxes and shipping costs.

By applying the weighted average formula, the taxes and shipping costs are distributed among the products to calculate the gross revenue as follows:

Product Base price Quantity Product net revenue Tax and shipping costs Product gross revenue

A

$25

1

$25

$2

$27

B

$10

4

$40

$3

$43

C

$40

3

$120

$10

$130