Revenue minus cost of revenue (hosting, support, onboarding) as a percentage. SaaS benchmarks target 70-80%+ gross margin.
Gross Margin is defined as: Revenue minus cost of revenue (hosting, support, onboarding) as a percentage. SaaS benchmarks target 70-80%+ gross margin.
Gross Margin is typically measured using data from a Accounting / ERP. This system of record provides the transactional and operational data required to calculate and monitor this metric accurately and in real time.
Gross Margin is a key performance indicator used across the following sectors:
Firehawk Analytics connects directly to your Accounting / ERP and delivers a live Gross Margin dashboard. Configuration is completed within 48 hours — no data analyst required on your team.
Predictable monthly revenue from active subscriptions. The foundational SaaS metric that all other calculations build upon.
Annualised value of recurring subscription revenue. The primary metric for SaaS valuation and investor reporting.
Percentage of customers or revenue lost in a given period. Even small reductions in churn compound dramatically over time.
In 48 hours, you'll have a live Gross Margin dashboard connected to your Accounting / ERP.