So long as the investment into growth (sales and marketing) is paid back through the cashflow of customers during their lifetime, the losses are tolerable. A p

So long as the investment into growth (sales and marketing) is paid back through the cashflow of customers during their lifetime, the losses are tolerable. A provider like DO expects to have customers for many years. At 50% gross margins, $100 spent to acquire a $50/yr customer will be returned in four years. That may be an acceptable trade off.