Hi! Could you please elaborate on how to calculate "contribution profit" please? (an example could be useful). Thank you. I did Contribution Margin across cohorts which proved useful to see how ICO, value proposition, pricing impacted the overall financial equation of the business 🙂
I want to call out a concept mentioned in your article that's extremely important: being transparent about company financials and other business metrics is key.
As a CFO, I share financial data with my company quarterly, along with specific churn and sales data that are core to understanding how well our business is doing. It was very uncomfortable at first, but we go into a rhythm and it's become a core part of our culture.
The concept is called open-book management, and it’s been a game changer for us. I'd love to see you go deeper in this area—I'm really curious if other CFOs take a similar approach.
Ramp's focus on contribution profit is a great way to align growth with efficiency. It’s a reminder that true sustainability comes from understanding and optimizing unit economics, not just chasing top-line metrics.
Hi! Could you please elaborate on how to calculate "contribution profit" please? (an example could be useful). Thank you. I did Contribution Margin across cohorts which proved useful to see how ICO, value proposition, pricing impacted the overall financial equation of the business 🙂
This could be a good newsletter topic. Not one right answer so would be good to go deeper on it
Great article.
I want to call out a concept mentioned in your article that's extremely important: being transparent about company financials and other business metrics is key.
As a CFO, I share financial data with my company quarterly, along with specific churn and sales data that are core to understanding how well our business is doing. It was very uncomfortable at first, but we go into a rhythm and it's become a core part of our culture.
The concept is called open-book management, and it’s been a game changer for us. I'd love to see you go deeper in this area—I'm really curious if other CFOs take a similar approach.
100% I should write more on this. Glad you liked it!
Ramp's focus on contribution profit is a great way to align growth with efficiency. It’s a reminder that true sustainability comes from understanding and optimizing unit economics, not just chasing top-line metrics.