2. Operating margin got crushed. While revenue fell 15% on average during the first 4 quarters of recession, operating loss fell 65% on average during the first 4 quarters of the recession. Operating margins fell to 1% during the first two quarters of the recession. While operating expenses were cut on median, SaaS companies have high fixed costs as talented people are very painful to lay off. Note that after the recession, operating margin came roaring back.
sammy@blossomstreetventures.com
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