Understanding SaaS Metrics(causal.app) |
Understanding SaaS Metrics(causal.app) |
The definition seems identical to the commonly-used term 'contribution margin', i.e. revenue less variable costs. https://en.wikipedia.org/wiki/Contribution_margin
Some of the other metrics are not the priority ones we look at either; your core measures really depend on if you looking for profitability or growth.
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
Cool, cool cool cool.