Re:Understanding SaaS Metrics
by franky47 on Monday April 26, 2021 @01:43AM
(#26939571)
What are the differences between service costs and operating costs? [1]
I'm surprised not to see taxes and other external costs being taken into account in the Retention Margin. Are they pre-subtracted from gross sales as the input of RM ?
Re:Understanding SaaS Metrics
by sokoloff on Monday April 26, 2021 @08:04AM
(#26941624)
To your second point: (business income) taxes are a cash-flow item, but are out of scope for margin analysis, which is a profitability measure, not a cash flow measure.
I'm surprised not to see taxes and other external costs being taken into account in the Retention Margin. Are they pre-subtracted from gross sales as the input of RM ?
[1] edit: found the answer in the Learn More section: https://www.causal.app/saas-metrics/retention-margin