The Idiot Index

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Sector
Labor ShareApplied to enterprise and developer-platform software companies. COGS captures hosting, support, and customer-success costs; the Markup Ratio is meaningful but the Operational Markup is the load-bearing indicator because most platform investment flows through OpEx (R&D, S&M).
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Labor Share in Software Platform · FY 2023

16 of 40 companies · highest first
  1. 1
    BILLBILL
    245¢ of every $1 of revenue reaches workers
    sector median 0.6112Bottom 3%
    2.4494
    of revenue → workers
  2. 2
    ZSZscaler
    240¢ of every $1 of revenue reaches workers
    sector median 0.6112Bottom 9%
    2.3950
    of revenue → workers
  3. 3
    NETCloudflare
    158¢ of every $1 of revenue reaches workers
    sector median 0.6112Bottom 16%
    1.5750
    of revenue → workers
  4. 4
    HUBSHubSpot
    133¢ of every $1 of revenue reaches workers
    sector median 0.6112Bottom 22%
    1.3335
    of revenue → workers
  5. 5
    UUnity
    132¢ of every $1 of revenue reaches workers
    sector median 0.6112Median range
    1.3240
    of revenue → workers
  6. 6
    PCTYPaylocity
    126¢ of every $1 of revenue reaches workers
    sector median 0.6112Median range
    1.2601
    of revenue → workers
  7. 7
    PANWPalo Alto Networks
    101¢ of every $1 of revenue reaches workers
    sector median 0.6112Median range
    1.0082
    of revenue → workers
  8. 8
    PEGAPegasystems
    62¢ of every $1 of revenue reaches workers
    sector median 0.6112Median range
    0.6189
    of revenue → workers
  9. 9
    PLTRPalantir
    60¢ of every $1 of revenue reaches workers
    sector median 0.6112Median range
    0.6035
    of revenue → workers
  10. 10
    SNPSSynopsys
    57¢ of every $1 of revenue reaches workers
    sector median 0.6112Median range
    0.5697
    of revenue → workers

Not yet covered (24)

These companies are in the Software Platform cohort but don't have a Labor Share computed for FY 2023. Either the underlying inputs aren't tagged in their XBRL filings, the DEF 14A pay-ratio narrative didn't parse cleanly, or this fiscal year hasn't been ingested for them yet.

What this measures

Full methodology →

How much of every revenue dollar reaches workers.

Ratio
Labor Share
Sector
Software Platform
Methodology version
v1.0.0
Formula
TotalEmployeeCompensation / Revenue
Sector context

Applied to enterprise and developer-platform software companies. COGS captures hosting, support, and customer-success costs; the Markup Ratio is meaningful but the Operational Markup is the load-bearing indicator because most platform investment flows through OpEx (R&D, S&M).

How much of revenue flows to the people creating it. Includes wages, salaries, benefits, and stock-based compensation.

When direct disclosure is missing: approximated as Headcount × Median Pay × 1.30 (1.30 grosses up base pay to fully-loaded compensation including benefits and equity). The approximation is documented per company on its detail page.

Source data: LaborAndRelatedExpense, ShareBasedCompensation (us-gaap), or EmployeeBenefitsExpense (ifrs-full). When approximated: NumberOfEmployees × disclosed median compensation.