Revenue per employee is the annual revenue divided by the total number of full-time employees. It measures operational efficiency and scalability, showing how much revenue each team member generates. The metric generally improves as the company scales, benefiting from operating leverage. It helps investors assess whether the team is appropriately sized relative to revenue.
Indicates operational efficiency and scalability. Improves as company matures.
Early stage: $100-200k. Growth stage: $200-400k. At scale: $300-500k+. Top performers exceed $500k.
ARR $3M; 18 employees → Revenue per employee = $3M/18 = $167k.
Comparing across different business models; not accounting for contractors; ignoring stage differences.
Team slide: headcount with revenue per employee if strong; shows efficiency.
18 FTEs; $167k revenue per employee and growing.
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