Revenue ARR MRR
Rule of 40
An indicator of the balance between profitability and growth.
Rule of 40 Table
This visualization shows the Rule of 40 (Revenue Growth % + Profit Margin %) by Quarter for FY20 in tabular form.
Rule of 40 by Quarter
This visualization shows the Rule of 40 (Revenue Growth % + Profit Margin %) by Quarter for FY20.
Category
Revenue ARR MRR
Description
This metric measures the trade-off between profitability and growth. Calculated as Revenue Growth % + Profit Margin %.
The Rule of 40 asserts that a successful SaaS company’s growth rate and profit margin should add up to 40% or more.
A must have metric for investor reporting easily accessible from within the catalog.
