Profit vs. Growth with the Rule of 40
In this 3-minute video, I explain how to calculate your Rule of 40, how to interpret the result, and key considerations when using this financial rule of thumb. Not only should SaaS leaders be using this metric, but investors apply this framework to determine if you are operating an “attractive” business.
Please also see my post for a detailed explanation of the SaaS Rule of 40.
How to Apply the Rule of 40 – Video Outline
- What is the Rule of 40 in SaaS
- How to calculate the Rule of 40
- Key considerations when using this SaaS metric
Download the PPT slides in this video below.