As someone else mentioned, that's gross margin, ie revenue minus cost of goods sold. I think in the tech industry we tend to fixate on gross margins, on the bas

As someone else mentioned, that's gross margin, ie revenue minus cost of goods sold. I think in the tech industry we tend to fixate on gross margins, on the basis that for your average SaaS there's virtually an infinite market, and other costs won't scale linearly as it is addressed, so net margin really is less important (mind you, people sometimes go a bit too far in discounting it) but for, say, a gigantic retail chain, things are different. Walmart can't just scale up its sales 10x, and even if it could it would need lots of new premises etc. For Walmart, what really matters is net profit margin, and that is low.