Subscription Revenue Gross Margin

The gross profit margin of the subscription software revenue only. Gross Margin is percentage of revenue remaining after subtracting the direct costs associated with the delivery of the hosted SaaS product in the period the revenues are generated. These direct costs fall into five categories:

  • Hosting and Infrastructure
  • Customer Support and Customer Success
  • Cloud Operations and Platform Support
  • Third-party Fees
  • Overhead Allocation

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