This report provides a detailed breakdown of contract utilization vs contract value for managed service providers.
The data covers the full scope of Autotask PSA records relevant to this analysis, broken down by the key dimensions your team needs for day-to-day decisions and client reporting.
Who should use this: Account managers, finance teams, and MSP owners managing renewals
How often: Monthly for pipeline review, 90 days before expiry for renewal preparation
EVALUATE ROW("TotalRevenue", SUM('BI_Autotask_Billing_Items'[total_amount]), "ActiveContracts", CALCULATE(COUNTROWS('BI_Autotask_Contracts'), 'BI_Autotask_Contracts'[contract_status_name] = "Active"), "TotalHours", SUM('BI_Autotask_Time_Entries'[hours_worked]))| Contract Type | Active | Revenue | Cost | Margin | Delivery Ratio |
|---|---|---|---|---|---|
| Recurring Service | 932 | $19.1M | $7.1M | 62.9% | 37.1% |
| Time & Materials | 287 | $2.35M | $1.16M | 50.5% | 49.5% |
| Block Hours | 158 | $7.5K | $3.6K | 51.6% | 48.4% |
| Fixed Price | 4 | $27.5K | $4.3K | 84.3% | 15.7% |
Recurring service contracts deliver the best absolute margins at 62.9%, reflecting well-calibrated fixed-fee pricing. Fixed price contracts post the highest margin (84.3%) but represent a tiny fraction of the portfolio — four active contracts and $27.5K in revenue. The T&M delivery ratio of 49.5% is acceptable but leaves less room than recurring models. Block Hours shows 158 active contracts but just $7.5K in revenue, suggesting most pre-sold blocks remain unconsumed.
-- Revenue, cost, and delivery ratio by contract type
EVALUATE
ADDCOLUMNS(
SUMMARIZE(
BI_Autotask_Contracts,
BI_Autotask_Contracts[contract_type_name],
BI_Autotask_Contracts[contract_status_name]
),
"Contract Count",
CALCULATE(
COUNTROWS(BI_Autotask_Contracts),
BI_Autotask_Contracts[contract_status_name] = "Active"
),
"Revenue",
CALCULATE(
[Revenue - Total],
FILTER(
BI_Autotask_Contracts,
BI_Autotask_Contracts[contract_type_name] = EARLIER(BI_Autotask_Contracts[contract_type_name])
)
),
"Cost", [Cost - Total],
"Margin Pct", DIVIDE([Profit - total], [Revenue - Total], 0),
"Delivery Ratio", DIVIDE([Cost - Total], [Revenue - Total], 0)
)
ORDER BY [Revenue] DESC| Client | Revenue | Cost | Profit | Margin | Delivery Ratio |
|---|---|---|---|---|---|
| Craig-Huynh | $2,770,213 | $1,013,970 | $1,756,243 | 63.4% | 36.6% |
| Lewis LLC | $2,357,215 | $894,222 | $1,462,993 | 62.1% | 37.9% |
| Little Group | $1,800,550 | $603,420 | $1,197,131 | 66.5% | 33.5% |
| Martin Group | $853,866 | $248,212 | $605,654 | 70.9% | 29.1% |
| Lopez-Reyes At Risk | $674,078 | $645,574 | $28,504 | 4.2% | 95.8% |
| Wall PLC | $666,033 | $214,395 | $451,637 | 67.8% | 32.2% |
| Burke, Armstrong & Morgan | $590,960 | $224,394 | $366,566 | 62.0% | 38.0% |
| Thompson, Contreras & Rios | $436,622 | $141,416 | $295,206 | 67.6% | 32.4% |
| Patterson, Riley & Lawson | $423,546 | $206,868 | $216,678 | 51.1% | 48.9% |
| Richards, Bell & Christensen | $404,423 | $107,091 | $297,332 | 73.5% | 26.5% |
-- Top clients by revenue with delivery ratio
EVALUATE
TOPN(
10,
ADDCOLUMNS(
SUMMARIZE(
BI_Autotask_Billing_Items,
BI_Autotask_Billing_Items[company_name]
),
"Revenue", [Revenue - Total],
"Cost", [Cost - Total],
"Profit", [Profit - total],
"Margin Pct", DIVIDE([Profit - total], [Revenue - Total], 0),
"Delivery Ratio", DIVIDE([Cost - Total], [Revenue - Total], 0)
),
[Revenue],
DESC
)The Lopez-Reyes row illustrates what a single over-utilized client looks like against a healthy portfolio. While the overall recurring service portfolio operates at a 37.1% delivery ratio, this client alone is at 95.8% — $674K in revenue, $645K in cost. Left unaddressed, one over-utilized client at this scale erases the profit from several well-managed ones.
At $674K revenue and $645K cost, this client generates only $28.5K in profit. That is a 4.2% margin on a top-five account. The contract is either priced far below the actual service workload, or scope creep has accumulated unchecked. This needs a contract repricing conversation before the next renewal.
Block Hours contracts are almost entirely inactive in billing. If clients are not drawing down pre-sold hours, it could indicate poor onboarding, forgotten retainers, or services that are no longer relevant. Either monetize them or restructure into recurring service agreements.
A 37.1% cost-to-revenue ratio for recurring service contracts is within the healthy 30–45% MSP benchmark range. The top three clients — Craig-Huynh (36.6%), Lewis LLC (37.9%), and Little Group (33.5%) — all fall close to the portfolio mean, indicating consistent contract pricing discipline.
Fixed price contracts show an 84.3% margin — far above any other type. With only four active contracts and $27.5K in revenue, there is a clear argument for converting certain project-based recurring service work to fixed price. This model protects margins when scope is well defined.
Delivery ratio is cost divided by revenue — the proportion of what a client pays that goes toward the actual cost of delivering the service. A 37% delivery ratio means 37 cents of every dollar billed goes to delivery cost, and 63 cents is retained as gross profit. A delivery ratio above 70–80% signals a contract where margins are at risk.
For recurring service (managed service) contracts, a delivery ratio of 30–45% is generally considered healthy, translating to a gross margin of 55–70%. Ratios below 30% may indicate underpricing of delivery risk. Ratios above 60% start to squeeze margin and ratios above 80% represent contracts that are effectively loss-making once overhead is included.
Time and materials billing passes all work hours to the client, which eliminates utilization risk but typically prices in a lower markup because clients expect visibility into effort. Recurring service contracts carry predictable value and allow MSPs to price for efficiency gains over time. The 12-point gap in delivery ratio (37.1% vs 49.5%) reflects this structural difference in how each model handles risk allocation.
First, investigate whether the high cost is structural (underpriced contract, high-touch client) or episodic (a major incident, large project, onboarding). If structural, raise the contract fee at the next renewal with a data-backed case showing actual delivery hours versus contracted value. If episodic, assess whether the incident is covered under the existing agreement or should be billed separately. Proxuma surfaces this ratio automatically so you can catch it before renewal rather than after.
Yes. Proxuma's Power BI model connects your Autotask billing items and contract records to pre-built revenue, cost, and margin measures. You can filter by client, contract type, and period, and surface delivery ratio alerts for any account that crosses a threshold you set. This report was generated in under two minutes by querying that same live model via AI.
Connect Proxuma Power BI to your PSA, RMM, and M365 environment, use an MCP-compatible AI to ask questions, and generate custom reports - in minutes, not days.
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