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.
#gross margin
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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.