SaaS Cost of Goods Trending Down – By How Much?
JANUARY 17, 2020
Downward trending cost of goods (COGs) benchmarks are improving SaaS gross margins. Competitive service offerings and new technologies are driving down costs to maintain SaaS infrastructures. As SaaS gross margins are rising, investors are becoming a bit more savvy about gross margin analysis , with increasing scrutiny of SaaS financials, especially in the wake of the WeWork, Peleton and Uber IPO disappointments, some of which is blamed on gross margins below those of true SaaS vendors.