DEFINITION of 'Revenue Generating Unit - RGU'

An individual service subscriber who generates recurring revenue for a company. This is used as a performance measure with analysts, investors and other participants. Investors will look for a company to increase its revenue generating units over time because this suggests that the company is remaining competitive.

BREAKING DOWN 'Revenue Generating Unit - RGU'

RGUs are a very attractive revenue sources for companies because each unit will continue to generate revenue into the future. Cable and telephone companies generally break down their subscribers into revenue generating units.

RELATED TERMS
  1. Recurring Revenue

    The portion of a company's revenue that is highly likely to continue ...
  2. Average Revenue Per Unit - ARPU

    A measure of the revenue generated per user or unit. Average ...
  3. Revenue

    The amount of money that a company actually receives during a ...
  4. Marginal Revenue - MR

    The increase in revenue that results from the sale of one additional ...
  5. Ancillary Revenue

    Revenue generated from goods or services that differ from or ...
  6. Quarterly Revenue Growth

    An increase of a company's sales when compared to a previous ...
Related Articles
  1. Investing

    S&P 500 Index: A Revenue Case Study

    Discover the breakdown of aggregate total revenue of S&P 500 companies, including how much revenue is earned by country, industry and geographic location.
  2. Small Business

    What's Marginal Revenue?

    In microeconomics, marginal revenue is the additional revenue generated by increasing sales revenue by one unit. Another way of saying this is that the marginal revenue is the revenue generated ...
  3. Managing Wealth

    Revenue Analyst: Job Description & Average Salary

    Learn what a revenue analyst does and what skills are needed to succeed in the position. Determine the education and experience required to work in this field.
  4. Personal Finance

    Revenue Analyst: Career Path & Qualifications

    Learn more about the duties of a revenue analyst and the qualifications needed for the position, along with the career path for these professionals.
  5. Investing

    Revenue Projections Show Profit Potential

    Examining how a company makes money can offer clues about its earnings potential.
  6. Investing

    S&P 1500 Index: A Revenue Case Study

    Learn what comprises the S&P 1500 and how analysts use revenue trends to benchmark against the performance of a portfolio or single stock investment.
  7. Investing

    Asset Turnover Ratio

    Investopedia explains: The asset turnover ratio is a measure of a company's ability to use its assets to generate sales or revenue, and is a calculation of the amount of sales or revenue generated ...
  8. Trading

    Stock Analysis Basics: How To Forecast Revenue and Growth

    Forecasted revenue and growth projections are important components of security analysis, leading to a stock’s future worth.
  9. Investing

    Netflix Stock Plunges on Q2 Subscriber Miss (NFLX)

    Netflix couldn't answer the subscriber growth challenge Monday.
  10. Investing

    Global Financials: Exploring Revenue Trends & Fundamentals

    Learn where the global financial industry stands on revenue fundamentals compared to other industries and explore industry trends by geography.
RELATED FAQS
  1. What is the relationship between marginal revenue and total revenue?

    Learn what total and marginal revenue are, how to calculate marginal revenue given total revenue, and how marginal and total ... Read Answer >>
  2. What is the difference between revenue and sales?

    Learn to distinguish between a company's revenue and its sales, and see why the distinction is important when analyzing a ... Read Answer >>
  3. How do companies calculate revenue?

    Revenue is the amount of money a company receives in exchange for its goods and services. The revenue received by a company ... Read Answer >>
  4. What types of revenue are taxable?

    Learn about all the various types of taxable corporate revenue and how different revenues are designated and differentiated ... Read Answer >>
  5. Why do companies stop trying to increase marginal revenue?

    Learn what marginal revenue seeks to measure and understand why a company would want to stop increasing its marginal revenue ... Read Answer >>
  6. How is marginal revenue used in business planning?

    Understand what marginal revenue is and what it's used to measure. Learn how a company should use marginal revenue in its ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center