Rethinking SaaS Success Evaluation With A New Metric for a New Era – The Rule of 100/3
leadership, executive teams, private equity, saas, chief product officer, board, non-executive Craig Unsworth leadership, executive teams, private equity, saas, chief product officer, board, non-executive Craig Unsworth

Rethinking SaaS Success Evaluation With A New Metric for a New Era – The Rule of 100/3

The 'Rule of 40' has long been the gold standard for evaluating the health and potential of SaaS companies. However, as the industry evolves and matures - recovering from a much slower Q4 2022 to Q1 2024 18 month period - the need for a more comprehensive metric has become increasingly evident. In this article, I propose a new benchmark – the 'Rule of 100/3' – as a more nuanced and effective tool for assessing SaaS companies in today's dynamic market. One that identifies growth, profitability, and retention - but, in aggregate, also one that demonstrates stability and resilience.

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