# Case: a board report for a new board member > A board report on the quarter: rebuild Klasna's autumn P&L from raw lines, separate what will repeat from what won't, and back the memo with numbers. - Course: [Finance for Product People: From Unit Economics to Business Cases](https://productovi.com/courses/finance-for-product.md) - Module: Are we actually profitable? - Lesson 8/32, ~39 min - Source: https://productovi.com/courses/finance-for-product/quarter-for-the-board-case ## One question from the board **Alex Tutor:** On Klasna's product team, you're helping Leo and Hanna get ready for Thursday's board meeting. **Leo:** Our new board member read the autumn P&L and sent one question: "Which of these numbers will still be there next quarter?" We meet on Thursday. **Hanna:** A good question. Let's answer it from the raw lines, not from my summary. Here is every line for September to November. **Dataset (CSV):** [Klasna's P&L lines, September–November 2026](https://productovi.com/datasets/finance-for-product/quarter-for-the-board-case/klasna-pnl-sep-nov-2026.csv) One row per line, one column per month, UAH. Klasna acts as an agent for 1:1 lessons (revenue = lesson_gmv − lesson_tutor_payouts) and as the principal for Teams and the Club. - `line`: lesson_gmv: families' payments for 1:1 lessons delivered (GMV, not revenue); lesson_tutor_payouts: the tutors' share of them; breakage: expired lessons; club_subscriptions and teams_lessons: revenue; payment_fees, video_ai, club_hosts_ai, teams_tutor_payouts: cost of revenue; support_coordinators, team_salaries, marketing, office_tools: operating expenses; depreciation: the laptops - `sep_2026`: September 2026 (oct_2026, nov_2026: the next months) **Alex Tutor:** Rebuild the P&L month by month. Revenue first: the commission, which is GMV minus the tutors' share, plus expired lessons, the Club and Teams. **Sofia:** So `lesson_gmv` never goes on the revenue line by itself, only its difference with the payouts. > **Exercise:** Use the dataset. What was Klasna's **revenue** in November 2026? ## Non-recurring revenue: profit without the expired lessons **Alex Tutor:** Carry on down the staircase. Operating profit: 352,306 UAH in September, 593,252 in October, 759,141 in November. **Leo:** Up every month. That's the story for Thursday. **Hanna:** Now take out the breakage line. September was the first month our packages ever expired; last autumn there was no such line at all. **Sofia:** September drops to 74,606. Most of September's profit came from lessons nobody took. **Alex Tutor:** Breakage is real revenue, but until we have a few cohorts of history, treat it as **non-recurring revenue**: it depends on families not using what they bought. A board member will want operating profit with it and without it. **Alex Tutor:** Two ways to tell the board the profit story. Which one would you put on Thursday’s slide? > **Exercise:** Klasna's operating profit was 352,306 UAH in September, 593,252 in October and 759,141 in November. Breakage, revenue from expired lessons, was 277,700, 188,460 and 163,150; September was the first month packages ever expired. Which headline should go to the board? > **Exercise:** Use the dataset. What was Klasna's **operating profit for the quarter without breakage**? In UAH. **Alex Tutor:** One number makes the point even sharper for the memo. > **Exercise:** Klasna's autumn operating profit was 1,704,699 UAH, and breakage brought 629,310 UAH of revenue with no costs attached. What **share of the quarter's operating profit** came from breakage? In percent, to two decimals. ## Margins that mean different things **Sofia:** Teams has the lowest gross margin, about 42%. Should we slow it down? **Alex Tutor:** Remember how Teams is shown: gross, with the tutor's 430 inside cost of revenue. A Teams lesson leaves 339 UAH of gross profit. A 1:1 lesson in November left about 143. **Hanna:** By line, the quarter's gross profit is: 1:1 lessons 3,523,282, Club 684,908, Teams 271,200, expired lessons 629,310. Together 5,108,699. **Alex Tutor:** As Teams grows, the blended gross margin will fall while gross profit rises. Better the board hears that from us before they see it. **Alex Tutor:** Check that warning against November’s raw lines. > **Exercise:** Use the dataset. What was Klasna's **gross margin in November 2026**? Remember that `lesson_gmv` is not revenue. In percent, to two decimals. > **Exercise:** **True or false:** Teams is shown gross (800 UAH of revenue a lesson; 430 to the tutor and 31 for video and AI in cost of revenue), and its gross margin is lower than that of 1:1 lessons. So each Teams lesson earns Klasna less gross profit than a 1:1 lesson. ## What the P&L can't show **Leo:** They'll also ask whether we can pay for growth ourselves. Does the P&L answer that? **Hanna:** Not by itself. Teams was invoiced 640,000 on 30 November, and companies pay in 30 to 60 days. We still owe 343,800 of service on Club annual plans. Families' prepaid lessons sit in deferred revenue. **Alex Tutor:** The P&L says the quarter earned money. The cash story needs the balance sheet and the cash flow statement. In the memo, name it as an open question rather than answering it with profit. **Alex Tutor:** One of Hanna's numbers is easy to misplace. Check where it lives. > **Exercise:** **True or false:** families paid 432,000 UAH up front for 100 annual Club plans this autumn, and at the end of November Klasna still owes 343,800 UAH of that service. Those 343,800 UAH are part of the autumn P&L’s revenue. > **Exercise:** Which of these will the board member **not** find in the autumn P&L? Select all that apply. ## Is 74.77% good? **Leo:** One more thing from the board member: is a 74.77% gross margin good for an education company? **Alex Tutor:** Answer that one in a few sentences first. It will sharpen the memo. **Sofia:** It's a blend of lines shown in different ways, so the per-lesson numbers should help. > **Exercise:** The board member asks: "Is a 74.77% gross margin good for an education company?" Answer in 2–4 sentences, using what you know about how Klasna's lines are shown. ## The board report **Leo:** Now the board report itself: a one-page memo, numbers first. **Hanna:** Revenue that will repeat, revenue that might not, and what the P&L can't tell them. **Alex Tutor:** And end with what you would watch next quarter. A board member remembers the last line. > **Exercise:** Write the memo for the new board member: what did Klasna's autumn quarter really earn, and which numbers will repeat? > **Key ideas** > > - Build the P&L from raw lines: GMV stays off the revenue line; revenue = commission + breakage + Club + Teams = 6,832,760 UAH; operating profit 1,704,699. > - Separate what may not repeat: breakage was 629,310 UAH. Without it operating profit is 1,075,389, and September falls from 352,306 to 74,606. > - A blended gross margin mixes lines shown net and gross. Compare gross profit per unit: 339 UAH per Teams lesson vs about 143 per 1:1 lesson. > - The P&L doesn't show unpaid invoices (Teams 640,000), service still owed (Club 343,800) or cash paid for equipment. Say so instead of implying it. **Alex Tutor:** That's the module in one memo: revenue is what you earned, gross and net change the look but not the profit, and every line has its own story. - Previous lesson: [Deferred revenue: when prepaid lessons are earned](https://productovi.com/courses/finance-for-product/when-revenue-is-earned.md) - Next lesson: [Profit is not cash: net income vs cash flow](https://productovi.com/courses/finance-for-product/profit-is-not-cash.md) --- Productovi Learning. Free, no sign-up needed to read.