When you start creating your Privacy Policy, the first set of questions will be used to determine what privacy laws apply to you, and thus what disclosures your Privacy Policy needs to contain. The question of "do you derive 50% or more of your annual revenue from selling the personal information of California consumers" is one of the questions that will determine whether you need to comply with the California Consumer Privacy Act (CCPA).
In this case, "revenue" refers to the income generated from normal business operations such as sales of goods or services. Revenue is income prior to expenses such as salaries, rent, or software costs. The CCPA has a very broad definition of "sale" meaning that you may be selling personal information without even realizing it. The law defines "sale" as "selling, renting, releasing, disclosing, disseminating, making available, transferring or otherwise communicating orally, in writing, or by electronic means, a consumer's personal information by the business for monetary or other valuable consideration.
If you are selling the personal information of Californians and such sales account for 50% or more of your annual revenue, then you should answer "yes" to this question.