Gross Margin

Category
Series B Team’s org
Market Practices

🟠: 65%-75% 🟡: 75%-85% 🟢: >85%

Critical
SaaS Gross Margin refers to the revenue a software as a service (SaaS) company generates after subtracting the direct expenses associated with creating and providing its services.
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Market Practices

From Initialized:

🟠  GOOD

65%-75%

🟡  BETTER

75%-85%

🟢  BEST

>85%

From Bessemer Venture Partners:

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From Revops Squared 2022 SaaS Benchmark:

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From The SaaS CFO’s “How to correctly calculate your SaaS Gross Margin:

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Additional resources