56 observations · 34 reports · 8 publishers
Rule of 40.
Every Rule of 40 observation from our practitioner benchmark corpus. Latest: OnlyCFO (2026).
Observations
56
Reports
34
Publishers
8
Latest
OnlyCFO
2026-01-13
2026-01-13
40 points
OnlyCFO
2026
minimum
SaaS companies deemed IPO-worthy; defined as growth rate + profit margin
What Does It Take to IPO? A CFO's Playbook for IPO Readiness →
SaaS companies deemed IPO-worthy; defined as growth rate + profit margin
What Does It Take to IPO? A CFO's Playbook for IPO Readiness →
46% percent
High Alpha
2025
33% percent
High Alpha
2025
20% percent
High Alpha
2025
24% percent
High Alpha
2025
30% percent
High Alpha
2025
33% percent
High Alpha
2025
median
Public SaaS companies (15% growth + 18% FCF margin)
2025 SaaS Benchmarks Report by High Alpha →
Public SaaS companies (15% growth + 18% FCF margin)
2025 SaaS Benchmarks Report by High Alpha →
47% percent
High Alpha
2025
median
SaaS companies with 106%+ NRR and <10 month CAC payback
2025 SaaS Benchmarks Report by High Alpha →
SaaS companies with 106%+ NRR and <10 month CAC payback
2025 SaaS Benchmarks Report by High Alpha →
10.3 x
Meritech
2025
median multiple
20-30% growth, 10-20% FCF margin
Software Market Analysis: Share Performance, Valuation Multiples, and Growth-Profitability Dynamics →
20-30% growth, 10-20% FCF margin
Software Market Analysis: Share Performance, Valuation Multiples, and Growth-Profitability Dynamics →
3.9 x
Meritech
2025
median multiple
<10% growth, 20-30% FCF margin
Software Market Analysis: Share Performance, Valuation Multiples, and Growth-Profitability Dynamics →
<10% growth, 20-30% FCF margin
Software Market Analysis: Share Performance, Valuation Multiples, and Growth-Profitability Dynamics →
6 percent
KeyBanc
2025
median
Private SaaS companies in 2024; expected to reach 13% in 2025 and 27% in 2026
KeyBanc Capital Markets & Sapphire Ventures 2025 SaaS Survey: AI-Driven Growth & Profitability Focus →
Private SaaS companies in 2024; expected to reach 13% in 2025 and 27% in 2026
KeyBanc Capital Markets & Sapphire Ventures 2025 SaaS Survey: AI-Driven Growth & Profitability Focus →
40 %
ICONIQ
2025
minimum
Combined YoY ARR Growth + FCF Margin for software companies
ICONIQ Enterprise Five: Key Performance Indicators for Software Companies in 2025 →
Combined YoY ARR Growth + FCF Margin for software companies
ICONIQ Enterprise Five: Key Performance Indicators for Software Companies in 2025 →
70% percent
drive.google.com
2025
top-quartile
Software companies $25M-$50M ARR
State of Software 2025: Rethinking the Playbook - Annual Topline Growth and Operational Efficiency Report →
Software companies $25M-$50M ARR
State of Software 2025: Rethinking the Playbook - Annual Topline Growth and Operational Efficiency Report →
50% percent
drive.google.com
2025
top-quartile
Software companies $250M-$500M ARR
State of Software 2025: Rethinking the Playbook - Annual Topline Growth and Operational Efficiency Report →
Software companies $250M-$500M ARR
State of Software 2025: Rethinking the Playbook - Annual Topline Growth and Operational Efficiency Report →
74 points
OnlyCFO
2025
second-highest
Figma (46% growth + 28% FCF margin) among public cloud companies
Figma S-1 | The IPO Bar is High →
Figma (46% growth + 28% FCF margin) among public cloud companies
Figma S-1 | The IPO Bar is High →
50 score
drive.google.com
2025
best-in-class
Top decile SaaS companies
SaaS Valuation Multiples: 2025 – A Comprehensive Analysis of Current Market Trends →
Top decile SaaS companies
SaaS Valuation Multiples: 2025 – A Comprehensive Analysis of Current Market Trends →
32 score
drive.google.com
2025
median
Average SaaS companies, 2025
SaaS Valuation Multiples: 2025 – A Comprehensive Analysis of Current Market Trends →
Average SaaS companies, 2025
SaaS Valuation Multiples: 2025 – A Comprehensive Analysis of Current Market Trends →
84 score
OnlyCFO
2025
monday.com in November 2021
Asana vs monday.com: Why The Market Got The Valuation Wrong In 2021 →
Asana vs monday.com: Why The Market Got The Valuation Wrong In 2021 →
13 score
OnlyCFO
2025
Asana in November 2021
Asana vs monday.com: Why The Market Got The Valuation Wrong In 2021 →
Asana vs monday.com: Why The Market Got The Valuation Wrong In 2021 →
69 percent
OnlyCFO
2025
40 percent
drive.google.com
2025
target
Growth rate + operating margin benchmark
2025 B2B SaaS Performance Metrics Benchmarks Report →
Growth rate + operating margin benchmark
2025 B2B SaaS Performance Metrics Benchmarks Report →
3% percent
OnlyCFO
2025
Fastly (4th worst among public cloud companies tracked)
Fastly's Collapse: Lessons in Broken Unit Economics and SaaS Valuation Destruction →
Fastly's Collapse: Lessons in Broken Unit Economics and SaaS Valuation Destruction →
14 points
OnlyCFO
2025
bottom-quartile
Amplitude; median public SaaS is 40
Lessons From Amplitude's Fall: Direct Listings, Extended PTEPs, and NRR Death Spirals →
Amplitude; median public SaaS is 40
Lessons From Amplitude's Fall: Direct Listings, Extended PTEPs, and NRR Death Spirals →
50 index
OnlyCFO
2025
Palantir valuation multiple (50x+) with high Rule of 40
DeepSeek's Impact on SaaS Valuation: Uncertainty, Long-Term Forecasts, and the Rule of 40 →
DeepSeek's Impact on SaaS Valuation: Uncertainty, Long-Term Forecasts, and the Rule of 40 →
20 percent
aventis-advisors.com
2025
64 points
OnlyCFO
2025
highest
Palantir vs. public cloud companies
Palantir Valuation Analysis: Expensive vs. Overvalued – A Rule of 40 Deep Dive →
Palantir vs. public cloud companies
Palantir Valuation Analysis: Expensive vs. Overvalued – A Rule of 40 Deep Dive →
10-25 x
OnlyCFO
2024
best-in-class
Profitable software businesses exceeding Rule of 40 in M&A transactions
Guide to Selling Your Company: PE vs. Strategic Acquirers →
Profitable software businesses exceeding Rule of 40 in M&A transactions
Guide to Selling Your Company: PE vs. Strategic Acquirers →
1-5 x
OnlyCFO
2024
median
Software businesses not exceeding Rule of 40 in current market (2023-2024)
Guide to Selling Your Company: PE vs. Strategic Acquirers →
Software businesses not exceeding Rule of 40 in current market (2023-2024)
Guide to Selling Your Company: PE vs. Strategic Acquirers →
24 points
OnlyCFO
2024
Zuora FY24E
Growth rate (6%) + FCF margin (~18%)
A $1.7B Failure: PE Buys Zuora – Lessons from Zuora's IPO-to-Acquisition Decline →
Growth rate (6%) + FCF margin (~18%)
A $1.7B Failure: PE Buys Zuora – Lessons from Zuora's IPO-to-Acquisition Decline →
15% percent
KeyBanc
2024
median
Private SaaS companies, 2024E
2024 KeyBanc Capital Markets & Sapphire Ventures SaaS Survey: Growth Deceleration and Profitability Focus →
Private SaaS companies, 2024E
2024 KeyBanc Capital Markets & Sapphire Ventures SaaS Survey: Growth Deceleration and Profitability Focus →
31% percent
KeyBanc
2024
top-quartile
Private SaaS companies, 2024E
2024 KeyBanc Capital Markets & Sapphire Ventures SaaS Survey: Growth Deceleration and Profitability Focus →
Private SaaS companies, 2024E
2024 KeyBanc Capital Markets & Sapphire Ventures SaaS Survey: Growth Deceleration and Profitability Focus →
45 score
OnlyCFO
2024
OneStream IPO candidate (34% growth + 11% FCF margin)
Software IPOs in 2024: Market Conditions, Subscale Company Viability, and the OneStream Test →
Software IPOs in 2024: Market Conditions, Subscale Company Viability, and the OneStream Test →
39.0 points
OnlyCFO
2024
median
Cloud companies with >25% NTM revenue growth
Blinded by Metrics: How Financial Metrics Can Deceive Investors and Operators →
Cloud companies with >25% NTM revenue growth
Blinded by Metrics: How Financial Metrics Can Deceive Investors and Operators →
32.0 points
OnlyCFO
2024
median
All cloud companies
Blinded by Metrics: How Financial Metrics Can Deceive Investors and Operators →
All cloud companies
Blinded by Metrics: How Financial Metrics Can Deceive Investors and Operators →
1 percent
Clouded Judgement
2024
Rubrik using reported revenue growth; 43% using ARR growth
Clouded Judgement: Rubrik S-1 Benchmarking Analysis →
Clouded Judgement: Rubrik S-1 Benchmarking Analysis →
1 percent
Clouded Judgement
2024
Rubrik LTM, revenue growth + FCF margin
Clouded Judgement: Rubrik S-1 Benchmarking Analysis →
Clouded Judgement: Rubrik S-1 Benchmarking Analysis →
43 percent
Clouded Judgement
2024
Rubrik LTM, ARR growth + FCF margin
Clouded Judgement: Rubrik S-1 Benchmarking Analysis →
Clouded Judgement: Rubrik S-1 Benchmarking Analysis →
15 percent
KeyBanc
2023
threshold_met
Private SaaS companies, 2022
2023 KeyBanc Capital Markets & Sapphire Ventures SaaS Survey: A Shift Towards Efficient Execution and Profitability →
Private SaaS companies, 2022
2023 KeyBanc Capital Markets & Sapphire Ventures SaaS Survey: A Shift Towards Efficient Execution and Profitability →
50 percent
KeyBanc
2023
threshold_met
Public SaaS companies, 2022
2023 KeyBanc Capital Markets & Sapphire Ventures SaaS Survey: A Shift Towards Efficient Execution and Profitability →
Public SaaS companies, 2022
2023 KeyBanc Capital Markets & Sapphire Ventures SaaS Survey: A Shift Towards Efficient Execution and Profitability →
65 index
Clouded Judgement
2023
top-quartile
Klaviyo; calculated as 57% growth + 8% FCF margin
Clouded Judgement: Klaviyo S-1 Benchmarking Analysis →
Klaviyo; calculated as 57% growth + 8% FCF margin
Clouded Judgement: Klaviyo S-1 Benchmarking Analysis →
40 percent
OnlyCFO
2023
minimum
Best-in-class SaaS companies
SentinelOne and the 2021 SaaS Valuation Bubble: Growth vs. Profitability Trade-off in Market Reset →
Best-in-class SaaS companies
SentinelOne and the 2021 SaaS Valuation Bubble: Growth vs. Profitability Trade-off in Market Reset →
24 percent
OnlyCFO
2023
SentinelOne with forecast improvements
SentinelOne and the 2021 SaaS Valuation Bubble: Growth vs. Profitability Trade-off in Market Reset →
SentinelOne and the 2021 SaaS Valuation Bubble: Growth vs. Profitability Trade-off in Market Reset →
32 percent
KeyBanc
2022
median
Percentage of surveyed companies meeting or exceeding 40% threshold
2022 Private SaaS Company Survey Results - KeyBanc Capital Markets →
Percentage of surveyed companies meeting or exceeding 40% threshold
2022 Private SaaS Company Survey Results - KeyBanc Capital Markets →
25 percent
KeyBanc
2022
21.5 MM
KeyBanc
2022
median
Companies meeting Rule of 40
2022 Private SaaS Company Survey Results - KeyBanc Capital Markets →
Companies meeting Rule of 40
2022 Private SaaS Company Survey Results - KeyBanc Capital Markets →
59 percent
KeyBanc
2022
median
Companies meeting Rule of 40
2022 Private SaaS Company Survey Results - KeyBanc Capital Markets →
Companies meeting Rule of 40
2022 Private SaaS Company Survey Results - KeyBanc Capital Markets →
17.6 MM
KeyBanc
2022
median
Companies not meeting Rule of 40
2022 Private SaaS Company Survey Results - KeyBanc Capital Markets →
Companies not meeting Rule of 40
2022 Private SaaS Company Survey Results - KeyBanc Capital Markets →
25 percent
KeyBanc
2022
median
Companies not meeting Rule of 40
2022 Private SaaS Company Survey Results - KeyBanc Capital Markets →
Companies not meeting Rule of 40
2022 Private SaaS Company Survey Results - KeyBanc Capital Markets →
31 percent
Clouded Judgement
2021
Samsara LTM revenue growth + FCF margin
Clouded Judgement: Samsara S-1 Benchmarking Analysis →
Clouded Judgement: Samsara S-1 Benchmarking Analysis →
49 percent
Clouded Judgement
2021
Amplitude; LTM revenue growth + LTM FCF margin; August 2021
Amplitude S-1 Analysis: Benchmarking Digital Optimization SaaS Metrics →
Amplitude S-1 Analysis: Benchmarking Digital Optimization SaaS Metrics →
26 percent
Clouded Judgement
2021
Confluent LTM (growth rate + FCF margin)
Confluent S-1 IPO Analysis: SaaS Benchmarking & Unit Economics →
Confluent S-1 IPO Analysis: SaaS Benchmarking & Unit Economics →
85 percent
Clouded Judgement
2021
LTM
UiPath; calculated as revenue growth + FCF margin
UiPath S-1 Financial Benchmarking Analysis: Pre-IPO Metrics & Cloud SaaS Comparison →
UiPath; calculated as revenue growth + FCF margin
UiPath S-1 Financial Benchmarking Analysis: Pre-IPO Metrics & Cloud SaaS Comparison →
39 percent
Clouded Judgement
2021
average
Procore LTM revenue growth plus LTM FCF margin
Clouded Judgement: Procore S-1 Benchmarking Analysis →
Procore LTM revenue growth plus LTM FCF margin
Clouded Judgement: Procore S-1 Benchmarking Analysis →
8 points
Clouded Judgement
2021
DigitalOcean (25% growth + (-17%) FCF margin)
DigitalOcean S-1 Analysis: Benchmarking Cloud Infrastructure Economics at IPO →
DigitalOcean S-1 Analysis: Benchmarking Cloud Infrastructure Economics at IPO →
8 percent
Clouded Judgement
2020
BigCommerce
Growth (24%) + Operating Margin (-32%) = -8; well below healthy 40+ threshold
BigCommerce S-1 Benchmarking: Pre-IPO Financial Analysis vs. Public SaaS Peers →
Growth (24%) + Operating Margin (-32%) = -8; well below healthy 40+ threshold
BigCommerce S-1 Benchmarking: Pre-IPO Financial Analysis vs. Public SaaS Peers →