Why are margins shrinking even as revenue grows?

Revenue increases but profitability declines.

S: At sixty-eight percent, the blended gross margin is within the target range for a scaling B2B SaaS business. C: The mechanism is cost-to-serve divergence across segments. I: When the top revenue segment compresses by ten percent or more in gross margin — from a historical seventy percent to fifty-four percent, for example — the economic impact is not p