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Sometimes I feel like I live in a parallel universe because 424k revenue per employee sounds like a large amount and should be very profitable.

Admittedly I'm not in the USA but even adjusting for that it still sounds large?

Are all US salaries so inflated that 424k doesn't more than cover a typical employee even after all overheads?



typically you need 1.5-2x a persons salary in revenue to cover their cost in the US.


According to Google the average Salesforce employee makes $115,000/year, so double that and it's $230,000. By those numbers labor would be almost 50% of their revenue.


According to their most recent quarterly report, they had ~$16B in operating expenses on $23B in revenue through Q322. I would imagine a vast majority of opex is headcount.


Which is why you typically quote that value instead of revenue per employee which without context could be great or terrible.


Quote what value?


Revenue multiple per employee.


Wouldn't that have the same problem? You'd need to break either down by cost of living area to solve it.


No because the revenue per employee multiple has the employee costs scaled on both sides of the ratio.


How so? Revenue isn't scaled, unless you do the thing I said.




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