Calculating Gross Margin for Enterprise SaaS Businesses
By Eric Mersch
In my experience, many Enterprise SaaS companies struggle with reporting gross margin due to lack of guidance on this topic. FASB refers to gross profit as the difference between revenue and cost of revenue. SEC Regulation S-K provides more detail, defining gross profit as “net sales less costs and expenses…Read More
Read MoreSaaS Company Benchmarking: Leveraging Metrics for Performance Insights
By Eric Mersch
In the many years I’ve worked with SaaS companies, I continue to observe a surprising lack of standardization of SaaS metrics and performance reporting. My experience reinforces the fact that SaaS business model variants and approaches to measuring performance via metrics are still very much undefined. This is true even…Read More
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