Gross Margins, Early to Late: What They Do (and Don't) Tell You
Gross margins are essentially a company's revenue from products and services minus the costs to deliver those products and services to customers, and it's one of the most important financial metrics a startup can track.
And yet, figuring out what goes into the "cost" for delivering products and services is not as simple as it may sound, particularly for high-growth software businesses that might use emerging business models or be leveraging new technology. Why do gross margins matter? When do they matter during a company's growth? And how do you use them to plan for the future?
In this…
The skinny
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