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Knowledge Base

Financial Metrics

Core financial metrics of the model — revenue, expenses, margins, and P&L structure.

P&L (Profit & Loss)

Profit & Loss statement — the main financial document showing revenue, expenses, and profit for a period.

How we calculate in Prodwave: P&L is built monthly: Revenue - OPEX = Net Income. With partner payments: bankNetIncome = netIncome - partnerShare.

Revenue

Total Income=Custom Income+Tier Revenue\text{Total Income} = \text{Custom Income} + \text{Tier Revenue}

Total revenue for the month. Consists of user revenue streams and tier revenue (when the tier grid is enabled).

How we calculate in Prodwave: totalMonthlyIncome = sum of all income items (by type: per_new_unit, per_active_unit, periodic, percentage_of_base) + tierRevenue.

OPEX

Total Expenses=Fraud Loss+Operational Expenses+Channel Expenses+Team Expenses+Referral Expenses\text{Total Expenses} = \text{Fraud Loss} + \text{Operational Expenses} + \text{Channel Expenses} + \text{Team Expenses} + \text{Referral Expenses}

Operating expenses — all costs of running the business: marketing, salaries, infrastructure, fraud losses.

How we calculate in Prodwave: totalMonthlyCost = fraudLoss + operationalExpenses + channelsCost + teamsCost + referralCost.

Gross Margin

Gross Margin=Total Income−Variable CostsTotal Income\text{Gross Margin} = \frac{\text{Total Income} - \text{Variable Costs}}{\text{Total Income}}

Gross margin — the share of revenue remaining after deducting variable costs. Shows the basic product profitability.

How we calculate in Prodwave: Gross Margin = (totalIncome - variableCosts) / totalIncome. Variable costs = fraudLoss + operationalExpenses.

Affects: LTV, Unit Economics, investment attractiveness

Operating Margin

Operating Margin=Total Income−Variable Costs−Fixed CostsTotal Income\text{Operating Margin} = \frac{\text{Total Income} - \text{Variable Costs} - \text{Fixed Costs}}{\text{Total Income}}

Operating margin — the share of revenue after deducting all operating expenses (variable + fixed).

How we calculate in Prodwave: Operating Margin = (totalIncome - variableCosts - fixedCosts) / totalIncome.

Net Margin

Net Margin=Total Income−Total ExpensesTotal Income\text{Net Margin} = \frac{\text{Total Income} - \text{Total Expenses}}{\text{Total Income}}

Net margin — the share of revenue remaining as profit after all expenses.

How we calculate in Prodwave: Net Margin = (totalIncome - totalCost) / totalIncome.

Take Rate

Take Rate=Total IncomeTotal Turnover×100\text{Take Rate} = \frac{\text{Total Income}}{\text{Total Turnover}} \times 100

Platform commission as a percentage of total turnover (GMV). Key metric for marketplaces and payment services.

How we calculate in Prodwave: Take Rate = totalMonthlyIncome / (retailTurnover + p2pTurnover + atmTurnover) × 100%.

Variable / Fixed Costs

Variable Costs=Fraud Loss+Operational ExpensesFixed Costs=Channel Expenses+Team Expenses+Referral Expenses\begin{aligned}\text{Variable Costs} &= \text{Fraud Loss} + \text{Operational Expenses} \\\text{Fixed Costs} &= \text{Channel Expenses} + \text{Team Expenses} + \text{Referral Expenses}\end{aligned}

Variable costs depend on business volume (grow with the customer base). Fixed costs do not (salaries, marketing, rent).

How we calculate in Prodwave: Variable: fraudLoss + operationalExpenses (per_unit, per_active_unit types). Fixed: channelsCost + teamsCost + referralCost.

Fraud Loss

Fraud Loss=Total Income×Fraud Rate100\text{Fraud Loss} = \text{Total Income} \times \frac{\text{Fraud Rate}}{100}

Fraud losses — percentage of revenue lost to fraud, chargebacks, and unauthorized transactions.

How we calculate in Prodwave: fraudLoss = totalMonthlyIncome × (fraudLossRate / 100). The rate is set in model parameters.

Related Topics

Unit EconomicsInvestmentIncomeOperationsPartners