CAC Payback is also rising in Japan's SaaS businesses

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There is an index called "Rule of 40" that is a standard for evaluating listed SaaS on the stock market. "Rule of 40" is a standard for judging the soundness of growth of a SaaS company based on whether the combined growth whatsapp number rate of ARR (annual recurring revenue) and profit margin exceeds 40%. In

fact, companies that achieve the "Rule of 40" tend to have a higher PSR (price-to-sales ratio). There is a clear difference between the average PSR of companies that achieve the Rule of 40, which is 7.1 times, and that of companies that do not achieve the Rule of 40, which is 5.3 times (see Figure 5). It can

be said that we are entering a phase where companies that are both generating sales and profits are evaluated, rather than simply SaaS companies that are growing.


Figure 5: Comparison of PSRs between companies that have achieved the Rule of 40 and those that have not



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Approaching segments that cannot be reached through existing sales strategies


As mentioned above, changes in the market have placed emphasis on how to acquire new customers while keeping sales costs down, and partner businesses are beginning to attract attention.