The Rule of 40: A Must-Know Metric for SaaS Business

DEV CommunityMonday, November 3, 2025 at 8:29:00 AM
The Rule of 40: A Must-Know Metric for SaaS Business
The Rule of 40 is becoming an essential metric for evaluating the health of SaaS businesses. It balances growth and profitability, helping investors and founders determine if a company is on the right track. In a landscape where rapid scaling can lead to cash burn, this benchmark offers a clearer picture of sustainability and success, making it a vital tool for decision-making in the SaaS industry.
— Curated by the World Pulse Now AI Editorial System

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