The previous Episode gave you an idea of how well you are managing revenue. Now we look at how well you manage to keep money inside the business - in other words profit.

Topics: Reoccuring Revenue Rate (MRR) = Sum of all Reoccuring Payments by month Average Revenue Per User (ARPU) = Total Revenue / Number of Subscribers Cost of Goods Sold (COGS) = Labor Costs + Materials Cost + Service Costs + Delivery Costs Gross Proftability = Total Revenue - COGS Customer Contribution = Revenue per Customer - COGS per Customer Earnings Before Taxes Interst payments Depreciation and Amortization (EBITDA) = Revenue - EBITDA