Rule of 40 in identifying SaaS companies I have previously highlighted some SaaS companies for my readers who might be interested in finding cloud-based companies to invest in. Those who are interested can check out the two articles below where I highlighted the SaaS stocks with gross margins in excess of 70% and looking to grow their revenue by at least 20% Additional Reading: Top 20 SaaS stocks. Which are those with strong gross margins and revenue growth? (Part 1) Additional Reading: Top 20 SaaS stocks. Which are those with strong gross margins and revenue growth? (Part 2) For those who are not familiar with SaaS stocks, these are mainly companies that sell software services to customers as an ongoing subscription instead of charging them a one-time sales/service fee. For example, if you are a small online business owner and you set up your “virtual” shop using Shopify’s online platform, then you have used a software-as-a-service (SaaS)....