Profit Margin Analytics
Understand Profit Margin Analytics
Paigo calculates profit margin metrics based on revenue and costs. The explanation of each profit margin item is listed below.
| Item | Explanation | Source of Data |
|---|---|---|
Gross Margin | Total Revenue - Total Cost. Reflects the net profit SaaS business retains. | Various Payment Channels, Cloud Billing Data |
Contribution Margin | Total Revenue - Variable Cost. Reflects marginal profit. | Paigo Calculated Costs, Various Payment Channels, Cloud Billing Data |
Contribution Margin by Customer | Revenue from a customer - Variable Cost attributed to a customer. Reflects the profitability on particular customers or contracts. | Paigo Calculated Costs, Various Payment Channels, Cloud Billing Data |
Contribution Margin by Offering (Coming Soon) | Revenue from a product offering - Variable Cost attributed to a product offering. Reflects the profitability of product lines or packages. | Paigo Calculated Costs, Various Payment Channels, Cloud Billing Data |
The costs used in profit margin analytics are those defined in #understand-usage-based-cost.
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