Rule of 40 is flawed for late-stage cloud companies approaching FCF positivity
Assigning equal weight to growth and profitability is flawed for businesses approaching or achieving free cash flow (FCF) positivity.
Supporting evidence
The Rule of X
Original excerpt
Rule of 40 is outdated for late-stage cloud : Assigning equal weight to growth and profitability is flawed for businesses approaching or achieving FCF positivity.