Rule of 40
rule_of_40Adds revenue growth rate and profit margin (usually EBITDA or free cash flow margin, both in percent). A score of 40 or more is the common rule of thumb for a healthy software company balancing growth and profitability. Use burn_multiple for capital efficiency instead. Guide: https://raziel.co/learn/startup-traction-analysis-metrics
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| profit_margin_pct | Yes | Profit margin in percent, EBITDA or free cash flow margin (-15 = -15%). | |
| revenue_growth_pct | Yes | Year-over-year revenue growth in percent (60 = 60%). Can be negative. |