Great analysis. How common is it for software or SaaS companies to capitalize sales commissions? What are the implications of doing it in your opinion?
Most capitalize commissions based on own commission plans are structured so it isn’t unusual. But important call out because it is a material change YoY that may look like they are getting much more efficient than they actually are in S&M.
They certainly are getting more efficient but not as much as just looking at the P&L may indicate
Great analysis. How common is it for software or SaaS companies to capitalize sales commissions? What are the implications of doing it in your opinion?
Most capitalize commissions based on own commission plans are structured so it isn’t unusual. But important call out because it is a material change YoY that may look like they are getting much more efficient than they actually are in S&M.
They certainly are getting more efficient but not as much as just looking at the P&L may indicate