While you are still explosively growing reducing sales and marketing spend doesn't make a lot of sense. It allows competitors who out spend you to catch up. Ins

While you are still explosively growing reducing sales and marketing spend doesn't make a lot of sense. It allows competitors who out spend you to catch up. Instead you should analyze SaaS businesses by the "Rule of 40": https://saasholic.com/the-rule-of-40-for-saas-and-subscription-business-4bc2d7bcd868 https://saasholic.com/the-rule-of-40-for-saas-and-subscripti... For Slack, if they grew 84% and their profit was -35% they are well above a net of 40 with 49. It is pretty easy to see that if Slack stopped spending on sales & marketing and stopped growing engineering they would be massively profitable. Instead, they should get as big as they can as fast as they can as most markets are becoming winner take all.