How to Categorize Expenses in a SaaS Startup v2.0
Baremetrics
DECEMBER 7, 2023
The gist of it is that Cost of Revenue includes costs that go into providing your Software as a Service. You’ll need Cost of Revenue to calculate your Gross Margin, which in turn you need to calculate Customer Lifetime Value (LTV), Customer Acquisition Cost (CAC) Payback Time and to understand your company’s unit economics in general.
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