[franky47]

What are the differences between service costs and operating costs? [1]

I'm surprised not to see taxes and other external costs being taken into account in the Retention Margin. Are they pre-subtracted from gross sales as the input of RM ?

[1] edit: found the answer in the Learn More section: https://www.causal.app/saas-metrics/retention-margin

[sokoloff]

To your second point: (business income) taxes are a cash-flow item, but are out of scope for margin analysis, which is a profitability measure, not a cash flow measure.