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Revenue definitely doesn't equal profit. Headcount is easier to measure than revenue, which is easier to measure than profit. :-) A rule of thumb I've heard f
by mathattack 9y ago
Revenue definitely doesn't equal profit. Headcount is easier to measure than revenue, which is easier to measure than profit. :-)
A rule of thumb I've heard for SaaS startups is after they reach $50MM in ARR, Revenue + Margins should equal 40%. So if you're growing 20%, you should have profits of 20%. If you're growing 50%, it's ok to lose 10%. Just a rough rule of thumb.