SSEBITDA⁠--A steady-state profit metric for SaaS companies

Founder takeaway

Evaluate SaaS profitability separately from discretionary growth investment: model what the existing revenue base and operating structure could earn in a steady state rather than treating every growth expense as proof of healthy economics.

Why it matters

Fast growth can obscure whether the underlying business creates durable value. Separating core economics from growth investment helps founders judge efficiency, set spending levels, and avoid scaling an unprofitable model.

Relevant guides

Put it to work

Build a steady-state scenario: if you paused expansion spending today, which revenue, service costs, and operating expenses would remain—and what profit would the current business produce?