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The example is so skewed in favor of the article. Why on earth would you spend fixed % of revenues on sales, marketing, R&D, G&A? They add up to 57% of revenues
by zupa-hu 7y ago
The example is so skewed in favor of the article. Why on earth would you spend fixed % of revenues on sales, marketing, R&D, G&A? They add up to 57% of revenues. So, the conclusion of the example could equally be that a SaaS company has to generate 43% gross margins or there is NO WAY for it to make a profit. Come on.. What about Square that is working with 41% gross margins according to the chart above it?