Margin

Definition

The percentage of revenue remaining after expenses; gross margin (before OpEx), operating margin (after OpEx), and net margin (after everything). The more the better.

Example Usage

Our gross margin improved to 65% this quarter, though operating margin declined due to increased marketing spending.

Origin

From 'margin,' the edge or difference between two numbers.

Fun Fact

Silicon Valley companies brag about high gross margins to hide terrible unit economics—a 90% margin on a $10 customer acquisition cost still loses money.

Source: Core financial analysis metric

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