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How to Apply the Rule of 40 for Your SaaS Company

The SaaS CFO

How to Calculate the Rule of 40 in SaaS The rule of 40 in SaaS is simple financial framework that balances revenue growth versus margins. It’s a rule of thumb to quickly determine the health and/or attractiveness of a SaaS company.

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How to Use the Rule of 40 | SaaS Metrics Playbook

Driven Insights

Every SaaS founder wants to maximize their company’s value—a goal that requires high performance in two key areas: growth and profitability. In fact, the more you can demonstrate a combination of revenue growth and operational efficiency, the better your chances of attracting investors and earning a higher valuation multiple.

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The Future of Financial Leadership: Aligning Operational and Strategic CFOs

The Finance Weekly

This can help you understand where you need to cut costs, for example, the SaaS Rule of 40 suggests that the sum of revenue growth rate and gross profit margin should be 40% or more for a healthy SaaS company, so if your company lacks in this area, an operational finance leader can help you find ways to improve it.

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Zuora Faces Revenue Woes Due To Slow Integration, Poor Sales Execution

PYMNTS

Zuora provides companies with the tools to transform into a software as a service (SaaS) business model and build a subscriber base. It went public in 2018 and the stock peaked at almost $36 soon afterward. However, the stock has declined to a recent $14.29. million to $268-278 million. Zuora’s revenue grew by 31.6

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Workforce Spend Sector Gets Busy

PYMNTS

The big action in corporate spend management is travel and entertainment (T&E), where the 800-pound gorilla has long been Software-as-a-Service (SaaS) goliath, SAP Concur. Newer AI-powered spend management systems can handle this rules processing and compliance at scale, which has become indispensable functionality. labor force.

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VCs Back Bitcoin For B2B Payments, AI For Enterprise Analytics

PYMNTS

It was a mixed bag of funding, with a few startups working in more traditional B2B technology, including expense management and SaaS. secured $40 million in Series C funding, reports this week said. The heart of the H2O story is converting classic rule-based software to AI-enabled micro-services,” explained Ambati in the interview.

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