SAAS margin & rule of 40 comparisons


I know that many of us are invested in SAAS type companies with an interest in margins as well as the concept of the rule of 40.

As per a similar post I made last quarter, one company does a nice job of pulling together benchmarks across the space. It is selective and it also has a focus on cyber security (the company is Qualys and it is a cyber security company), but leaving that aside, the data points are interesting.

Overall - 3 takeaways that I notice:-

  1. Overall more of the companies benchmarked are entering positive territory
  2. Paycom, Veeva and Qualys remain at the lead on margin and Shop and Qualys lead on rule of 40
  3. Twilio and New relic are advancing on both whilst ZS and Okta have fallen back on both, Palo Alto and Atlassian remain steady and strong.

Q2 data (released in Q3):…
Q1 data (released in Q2):…

Relevant slides are ~28-30 in each. Other mentions include Sail, Box, Hubspot, Zen etc.