Gross Margin

A Rule of 40 heatmap by quarter from Q3 2023 to Q4 2025 for Formlabs, 3D Systems, and Stratasys. Formlabs climbs from negative scores into the green 25 to 49 percent range, while 3D Systems stays deeply negative and Stratasys hovers near zero.

Does the Rule of 40 Work for Hardware?

I've written about the Rule of 40 since 2015, and it's now gospel in SaaS. Does it mean anything for a company that makes physical things? Yes - but you have to read the curve, not the snapshot.

Rule of 40 Hardware Saas

Why Gross Profit Is More Important Than Revenue

I’ve been thinking a lot about gross profit (and gross margin) lately. Yeah, I know I can be riveting, but stay with me. When I was in Boston a while

Revenue Valuation Gross Margin

Lessons From The Internet Bubble: Growth vs. Profitability

Over the weekend, Mark Suster and Fred Wilson each put up awesome posts discussing the idea of profitability in startups. Mark’s is a master class about how to look at

Revenue Fred Wilson Financials

What Is Your Hardware Business Gross Margin?

I’m seeing an endless stream of hardware-related companies these days. In our world, we are focused on software wrapped in plastic, a line I think I first used some time

Financials Gross Margin Hardware