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Contribution Margin in SaaS

by

Sammy Abdullah

Sammy is the Managing Director and Cofounder of Blossom Street Ventures. Email him directly at sammy@blossomstreetventures.com

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efinition. Contribution is generally defined as the aggregate ARR from an annual cohort at the end of a given fiscal year, less the estimated associated cost of revenue and estimated allocated sales and marketing expense.

Sammy Abdullah

Managing Partner & Co-Founder

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Other Resources for Founders:
SoftwareMultiples.comFounderInvited.comTwoFoundersTalk.comsoftwareMRRcalculator.com