ReferenceGlossary
Operating margin
Operating profit as a share of revenue: (revenue − operating costs) / revenue. Operating costs include hosting, salaries, and fees. It shows how much of each dollar of revenue the business keeps after it pays to run itself.
Business
In Quorum#
The game's margin is (revenue − Burn) / revenue, where Burn is the cloud bill plus salaries, Egress, and third-party fees; with no revenue it reads −100%. Margin plus annual user growth is your Rule of 40, which sets the valuation multiple: 4 + 0.15 × the Rule of 40, from 2 to 30. In the Public Era you set margin guidance of 10%, 20%, or 30% each quarter, and a beat raises the multiple while a miss lowers it.