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Why Is the Rule of 40 Back in Style?

Why Is the Rule of 40 Back in Style?

SaaS Metrics School

July 29, 20233m 39s

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Show Notes

In episode #16, I address the Rule of 40, a popular investor metric. As a SaaS CFO, I like to say that financial discipline never goes out of style. There are lovers and haters of the Rule of 40. When investments were flowing, Rule of 40 was put on the back shelf.

- What is the Rule of 40?

- What is profit?

- What is growth?

- When should I use the Rule of 40?

- What does it mean, really?

- When is it a red flag?

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