For a long time revenue per employee was a good approximation for the profitability of a company. For instance, in the US for a SaaS company to be profitable generally meant it had revenues of at least $200K/employee. Wages were the bulk of a software company’s operating expenses. As we are entering the age of AI the biggest factor will be electricity. Data center capital expenditures are massive right now, but eventually the infrastructure will be deployed. Operating cost in the future will ...
