SaaS margins — where they should be

By Medium - 2020-11-30

Description

The general rule of thumb for spending in SaaS is 40/40/20. In other words, 40% of operating expense should be on R&D, 40% should be on…

Summary

SaaS margins — where they should be The general rule of thumb for spending in SaaS is 40/40/20.
On median, 30% of opex is R&D, 47% is on sales and marketing, and 22% is on G&A.
The rule is therefore “30/50/20” may be more accurate.
The other rule of thumb that needs to be debunked is that COGS is 20% of revenue.
As you can see, the median and averages are 25% and 27% respectively.

Topics

Backend (0.31)
Database (0.17)
Management (0.12)

Similar Articles

Google Cloud BrandVoice: 5 Data Trends That Will Take Your Business Forward In 2021, From Google Cloud Leaders

By Forbes - 2020-12-22

2020 was a year like no other, but the silver lining of a changed world brought data quality, speed, and insights to the forefront for businesses. Here’s what’s coming next.

Building a Data Platform in 2021. How to build a modern, scalable data

By Medium - 2021-03-07

This is a tough metaphor for me to use as a proud cat parent, but the sentiment has never been more accurate when it comes to data in the 21st century. While it’s true that you can solve most of your…

15 Essential Steps To Build Reliable Data Pipelines

By Medium - 2020-12-01

If I learned anything from working as a data engineer, it is that practically any data pipeline fails at some point. Broken connection, broken dependencies, data arriving too late, or some external…

Drowning in Data? How To Ensure Your Data Strategy Isn't Hurting Your Brand?

By CMSWire.com - 2021-03-16

Not all data is valuable or actionable and discerning which is which can be hard. Learn to craft a successful data strategy that can help a brand learn to swim.

Breaking through data-architecture gridlock to scale AI

By McKinsey & Company - 2021-02-19

Large-scale data-architecture redesigns can tie up AI transformations. Five steps can help companies break through the gridlock.

7 Ways Your Data Is Telling You It’s a Graph

By Neo4j Graph Database Platform - 2015-12-23

Watch (or read) Senior Project Manager Karen Lopez’s GraphConnect presentation on the signs that your data is actually a graph and needs a graph database.