SaaS Economics
Why Gross Margin Is Destiny in SaaS
Gross margin sets the ceiling on CAC payback, R&D budget, free cash flow, and valuation. Two SaaS firms with equal revenue but 80% vs 55% margin aren't the same.
Topic hub
SaaS Economics
Unit economics from the inside: payback periods, net revenue retention, gross margins, and the cost structures behind software businesses — grounded in real operator data.
3 articles
Unit Economics
Pricing
SaaS Economics
Usage-Based Pricing vs Seat-Based Pricing
Usage-based pricing lifts net revenue retention but adds volatility. Seat-based is predictable but caps expansion. The choice is a strategy decision, not billing.
Apple
SaaS Economics
Apple Services Revenue Margin: The Engine Inside iPhone
Apple Services revenue margin is 75.4%, turning a quarter of sales into 42% of gross profit. Read the margin engine through Apple's own FY2025 10-K.
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