What Is the Rule of 40 in SaaS?

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2026-07-31 21:37:44 -

There is a peculiar tension at the center of every software company. Grow faster. Become more profitable. Do both. The problem, of course, is that these objectives often pull in opposite directions. Spend aggressively on sales and marketing, and growth accelerates—but profits evaporate. Tighten expenses to improve margins, and growth frequently slows. Executives debate. Investors...

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