SaaS Rule of 40 Drivers Using KeyBanc’s 2021 SaaS Survey
SaaStr
NOVEMBER 4, 2021
In simple terms, the “Rule of 40” states a healthy SaaS company’s a) revenue growth rate plus b) profit margin should exceed 40%. . In equation form, Revenue Growth % + Profit Margin % > 40%. KBCM helpfully presents a very detailed comparison of “Rule of 40” Qualifiers (i.e.
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