B2BaCEO (with Ashu Garg) cover image

How to Be a SaaS Wunderkind (Christian Owens, Founder & CEO of Paddle)

B2BaCEO (with Ashu Garg)

CHAPTER

The Golden Vulture Number Is a Good Metric

The rule of 40 comes with the challenges because it's just a threshold. And that threshold doesn't work for different points of time and different levels of growth. The metric we have come up with is a modified you know we started off with the rule of 40 and we modified it to say think about the sum of your free cash flow margins and your revenue growth margins revenue growth. So if you're growing revenues and 120 percent. You're over here and your free cash Flow margins are minus 40 percent. That sum will be 80. Yeah. For fun we decided to call it the golden velocity number. I have no idea why we decided we were having a beer and that's the number we

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