They've been reinvesting potential profit into the company in order to grow R&D. (Spend has increased from $57M in FY13 to $141M in FY15.) Their gross margins

They've been reinvesting potential profit into the company in order to grow R&D. (Spend has increased from $57M in FY13 to $141M in FY15.) Their gross margins are probably what you want to look at instead, since their cost of revenue won't include R&D ($ in 1,000s): FY13 FY14 FY15 Gross revenue 148,512 215,109 319,521 Gross profit 115,481 117,123 266,589 Gross margin 77.7% 54.4% 83.4% These are very healthy for a software company. They nearly doubled their spend on sales and marketing between FY13 and FY14, which explains the temporary dip in gross margin in FY14.