The Rule of 40 is a widely used financial benchmark in the software-as-a-service (SaaS) and broader technology sector, particularly among venture capitalists and investors evaluating high-growth companies. It measures a company’s ability to balance revenue expansion with profitability. Rule of 40 is calculated as the sum of the year-over-year revenue growth rate (as a percentage) ...

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Link :
https://www.nextbigfuture.com/2026/02/ai-demand-and-profits-are-better.html