Build Once, Sell Many Times Software as a Service (SaaS) companies have come to dominate the technology space, and there is one metric that sums up just why: gross margin. Gross margin is the difference between the company’s revenue and its cost of goods sold. The higher the gross margin, the more of the revenue the company retains for each and every sale it makes. SaaS companies have very high gross margins - typically 50% on the low end and as much as 80% or more on the high end.
AI/ML vs. Traditional Software
AI/ML vs. Traditional Software
AI/ML vs. Traditional Software
Build Once, Sell Many Times Software as a Service (SaaS) companies have come to dominate the technology space, and there is one metric that sums up just why: gross margin. Gross margin is the difference between the company’s revenue and its cost of goods sold. The higher the gross margin, the more of the revenue the company retains for each and every sale it makes. SaaS companies have very high gross margins - typically 50% on the low end and as much as 80% or more on the high end.