[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"glossary-gross-margin::en":3,"gloss-cluster-gross-margin::en":23,"gloss-next-gross-margin::en":9},{"slug":4,"category":5,"name":6,"definition":7,"meta_desc":8,"faq":9,"schema_markup":9,"related":10},"gross-margin","saas","Gross Margin","Gross margin is the share of revenue left after subtracting the direct cost of delivering your product - your cost of goods sold (COGS). For SaaS that COGS is mostly cloud hosting, third-party APIs and infrastructure, payment-processing fees, and the customer-support and success staff needed to keep accounts running. The formula is (revenue - COGS) \u002F revenue. Healthy pure-software SaaS lands around 75-85%; anything materially lower usually means expensive infrastructure, heavy human-in-the-loop support, or resold third-party costs eating the model. Gross margin matters because it's the money actually available to fund sales, R&D, and profit - two companies with identical ARR but 80% vs 55% margins are completely different businesses. It's also why AI features deserve scrutiny: per-token model costs are variable COGS that can quietly compress margin as usage grows. Track gross margin per product line, watch it as you scale, and design pricing so heavy users don't turn your best customers into your least profitable ones.","Gross margin is revenue left after the direct cost of delivering your product — hosting, third-party APIs, payment fees, support — and 70-80% is the SaaS norm.",null,[11,14,17,20],{"slug":12,"name":13},"ltv","Customer Lifetime Value (LTV)",{"slug":15,"name":16},"payback-period","CAC Payback Period",{"slug":18,"name":19},"rule-of-40","Rule of 40",{"slug":21,"name":22},"total-cost-of-ownership","Total Cost of Ownership (TCO)",[24,28,32,35,38,41,44,48,51,54,57,60],{"slug":25,"category":5,"name":26,"updated_at":27},"activation","Activation","2026-08-24T02:46:36+00:00",{"slug":29,"category":5,"name":30,"updated_at":31},"aha-moment","Aha Moment","2026-08-24T02:46:37+00:00",{"slug":33,"category":5,"name":34,"updated_at":31},"annual-contract-value","Annual Contract Value (ACV)",{"slug":36,"category":5,"name":37,"updated_at":27},"api-first","API-First",{"slug":39,"category":5,"name":40,"updated_at":27},"arpa","Average Revenue Per Account (ARPA)",{"slug":42,"category":5,"name":43,"updated_at":27},"arr","Annual Recurring Revenue (ARR)",{"slug":45,"category":5,"name":46,"updated_at":47},"auto-renewal-clause","Auto-Renewal Clause","2026-08-24T02:46:38+00:00",{"slug":49,"category":5,"name":50,"updated_at":47},"build-vs-buy","Build vs. Buy",{"slug":52,"category":5,"name":53,"updated_at":31},"burn-multiple","Burn Multiple",{"slug":55,"category":5,"name":56,"updated_at":47},"burn-rate","Burn Rate",{"slug":58,"category":5,"name":59,"updated_at":27},"cac","Customer Acquisition Cost (CAC)",{"slug":61,"category":5,"name":62,"updated_at":27},"cdn","Content Delivery Network (CDN)"]