When Gross Margins Matter

Web: https://a16z.simplecast.com/episodes/when-gross-margins-matters-43LuzSul Audio: https://chtbl.com/track/85G57/locator.simplecastcdn.com/3f86df7b-51c6-4101-88a2-550dba782de8/5e57d6de-9850-4aa8-b750-be18a68362c3.mp3?aid=rss_feed&feed=JGE3yC0V

Gross margins–which are essentially a company’s revenue from products and services minus the costs to deliver those products and services to customers–are one of the most important financial metrics for any startup and growing business. 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. 

In this episode from June 2020, a16z …

accounting balance sheet business fundamentals finance gross margins innovation investing startup