> History is littered with companies who claimed to have great "gross margins" but died because they overspent on "product development." Please do tell. > Duo

> History is littered with companies who claimed to have great "gross margins" but died because they overspent on "product development." Please do tell. > DuoLingo's hosting costs should be low. But content development costs should be included in COGS (being pedantic: COGS doesn't apply to non-inventory business activities, so we should be using the term COR instead). Content development and customer service aren't cheap. I agree with you here, except for specifics. Do we know how much content costs? (ps, once you create content for a language it can scale infinitely - as opposed to having teachers in a classroom who can't). We don't know how much customer service costs / personnel they have, BUT it is part of COGS (as per their definition) so its impossible to qualify that hosting "should be lower" unless you know their specific hosting costs.