How to Correctly Calculate your SaaS Gross Margin

The article on "How to Correctly Calculate your SaaS Gross Margin" from The SaaS CFO explains the importance of understanding and calculating gross margins in SaaS businesses. It provides a detailed guide on how to calculate overall SaaS gross margin, recurring revenue margin, and service margin. Key components include segregating total revenue from costs of goods sold (COGS), which encompasses expenses like support, services, customer success, and Dev Ops. The article emphasizes the need for a well-structured P&L to accurately manage financials and calculate relevant metrics.