Rule of 40 - Analysis of Meritech Capital Benchmarks at SaaS Metrics Palooza '23
Podcast:SaaS Talk™ with the Metrics Brothers - Strategies, Insights, & Metrics for B2B SaaS Executive Leaders Published On: Wed Nov 15 2023 Description: Rule of 40 is a long standing metric used by investors to determine the health and enterprise value of a SaaS company, that is misunderstood far too often - so CAC and Growth dedicated an episode to how the Rule of 40 is calculated and how it impact company valuations including:Calculation formulaBest variable for the operating profitability componentBalance of growth and profitability yielding the highest valuation multiplesWhen does the Rule of 40 become valuable versus a vanity metricIf you are a SaaS operator or a public SaaS company investor, this episode covers and important topic and is a great listen!See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.