The phrase often implies that the ultimate winner is most satisfied, regardless of previous setbacks. She came in first at the end of the marathon, proving he who laughs last laughs longest.
Pro Tip 2/3
Revenge Context
It's used when someone has the final and definitive success after being outperformed or mocked initially. After being teased for his prototype, when his invention succeeded, he knew he who laughs last laughs longest.
Pro Tip 3/3
Patient Triumph
It suggests that being patient and persistent can lead to the greatest success which is more memorable. They celebrated too early, but our team won in overtime; he who laughs last laughs longest.