SSEBITDA – A STEADY-STATE PROFIT METRIC FOR SAAS COMPANIES

Summary from the TLDR Product newsletter

When a business is "spending to grow," it can assess its true profitability using SSEBITDA, which reflects profit assuming only enough spending to maintain its current size. Unlike older models like EBITDASM, SSEBITDA accounts for customer churn and acquisition efficiency, helping businesses differentiate between sustainable growth and a flawed business model.