A profit and loss statement can run to hundreds of lines, but investors and boards tend to focus on a small set of numbers. Knowing which ones, and why, makes every financial conversation sharper.
1. Revenue growth rate
Growth is measured month over month and year over year. Look at both: monthly figures show momentum, while annual figures smooth out seasonality.
2. Gross margin
Gross margin is revenue minus the direct cost of delivering it, divided by revenue. For software businesses, 70 percent or higher is typical. A falling gross margin often signals pricing pressure or rising delivery costs.
3. Operating expenses as a share of revenue
Track sales and marketing, research and development, and general and administrative costs separately. Each should shrink as a percentage of revenue as the business scales.
4. EBITDA margin
Earnings before interest, taxes, depreciation and amortization approximates operating profitability. It is not cash, but it shows whether the core business can fund itself.
5. Burn multiple
For companies that are not yet profitable, the burn multiple compares cash burned to new annual recurring revenue added. Below 1.5 is considered efficient, and anything above 3 deserves a closer look.
| Number | Healthy range | Watch if |
|---|---|---|
| Revenue growth (year over year) | 30% or more | Slowing two quarters in a row |
| Gross margin | 70% or more | Falling below 60% |
| EBITDA margin | Improving each quarter | Flat while revenue grows |
| Burn multiple | Below 1.5 | Above 3 |
Keep these numbers in view
Veyra calculates each of these metrics automatically from your books and tracks them over time, so the numbers investors ask about are always one click away, with the drivers behind every change already explained.
