Total Recurring Gross Margin

Metric Name

Total Recurring Gross Margin

Metric Family

Income Statement

Metric Definition

Percentage of recurring revenue that remains after subtracting the recurring cost of goods sold.

Formula

Total Recurring Revenue Gross Margin (%) = Total Recurring Revenue - Recurring COGS / Total Recurring Revenue

Application

This metric can provide insight into the profitability of a company's recurring revenue streams, which are crucial for the long-term sustainability of SaaS businesses.