In the traditional SaaS model described, companies are unprofitable during growth and become profitable in a later harvest phase as customer-acquisition spending declines.

“Cu- Ex- exactly. "And we're gonna be burning a lot of money early on, um, but we're just in growth mode. We're in customer acquisition mode. Once we exit growth mode, we'll be more in harvest mode, and that's when we'll start to become... we'll flip profitable, um, 'cause we're not spending a lot of money on, on, um, on customer acquisition costs."”

“But, you know, the, the general model of a SaaS company was unprofitable over time, then profitable. What's happened with Anthropic, and let me pull up another chart here.”