Monday.com Earns Rule of 40 Standing Alongside HubSpot and MongoDB

Analyst Shay Boloor's updated software comparison sheet ranked Monday.com in the "Good (30-39%)" Rule of 40 tier, placing MNDY alongside HubSpot and MongoDB in a cohort that most publicly traded SaaS companies are struggling to match.

The full four-tier breakdown Boloor shared puts Palantir and Palo Alto Networks in the top "Unicorn" category at 60% or above, while ServiceNow, CrowdStrike, and Adobe occupy the "Elite" band at 50-59%. Snowflake, Datadog, Salesforce, and Shopify, among others, land in the "Great" tier at 40-49%. Monday.com's 30-39% placement keeps it out of that elite company but firmly above the threshold that most SaaS businesses cannot clear.

As of Q1 2025, the median Rule of 40 score across tracked SaaS companies was just 12%, with a median growth rate of 10% and EBITDA margins of 6%, and only a handful of high performers were comfortably above the 40% threshold. Clearing 30 in that environment is meaningful, not just a participation trophy.

The Rule of 40 is a performance benchmark stating that a healthy SaaS company's combined revenue growth rate and profit margin should equal or exceed 40%, a metric popularized by venture capitalist Brad Feld to give investors and operators a single number that captures the tension between growth and efficiency. Unlike traditional financial metrics that focus on either growth or profitability in isolation, it combines these critical dimensions into a single score that reveals whether a business has found sustainable balance.

For Monday.com employees, the significance of the ranking cuts deeper than abstract benchmarking. Rule of 40 scores declined across almost all ARR sizes and funding types from 2023 to 2025, meaning the companies that maintained their scores did so against a genuine headwind. Holding the "Good" band while simultaneously investing in AI product expansion, including monday CRM and work AI features, signals that management has not traded long-term operating discipline for short-term feature velocity.

Investors use the Rule of 40 as a key metric to assess a company's potential, and meeting it can lead to stronger investor confidence, higher valuations, and better funding opportunities. For MNDY shareholders watching the stock, the tier placement is a data point that tends to influence how institutional investors price the multiple.

The same sheet that affirms Monday.com's standing is also a useful mirror. The companies sitting one tier up, Snowflake, Datadog, Shopify, are building toward a combined score in the 40s that Monday.com has not yet reached. Closing that gap, whether through accelerating revenue or expanding operating margin, is the next visible climb on the chart Boloor just updated.