Total Recurring COGS

Metric Name

Total Recurring COGS

Metric Family

Income Statement

Metric Definition

Total direct costs associated with delivering the SaaS product or service on an ongoing basis

Formula

Total Recurring COGS = E(Hosting and Infrastructure Costs + Third-Party Software Licenses + Customer Support Costs + Payment Processing Feeds + Other Direct Costs)

Application

Provides a clear understanding of the company's cost structure profitability