Operating leverage
Operating leverage
Operating leverage means revenue grows faster than the cost of serving it. Technology is one of the main ways to get there: automation, platform reuse, AI applied to real workflows, and cloud and infrastructure discipline. I write about which of these levers move gross margin and operating expense, and which only add activity.
Metrics this topic covers
Gross margin
Cost to serve
Operating expense as a share of revenue
Revenue per employee
Other topics
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