Cost of subscription does not include S&M expense. Take a look at Alteryx gross margins for example at 93%. The cost basis of that margin does not take into account S&M expense.
S&M is expensed separately for every company we follow and is not included in Gross Margins, but is certainly included in Operating Margins.
Am I missing something?
A.J.
Tamhas, you are right! S&M is normally a part of Operating expenses, not cost of revenue, and in rereading what I wrote, I see that it was me that misread it, and that I was rude to Phoolio, and I want to apologize to him too.
Saul
No worries here, Saul.
But I would like to know if any of this changes your opinion on the company.
Or for that matter, anyone else’s.
Thanks,
A.J.
Not mine. They still were a service unit of Dell for a dozen years. Management still had no experience of being an independent SaaS company. They still got all their customers from Dell. They still only signed nine, nine! new customers in three months. They may do fine, but I have better places for my money.
Saul
I do not understand this fealty to Picotal. It is the same as it was to Talend and Nutanix because we desired something undiscovered and cheap.
This Cloudera excitement the same.
9 new customers in all the world. The beauty of business is that reality can be separated from hope by simply looking at the numbers. The numbers here do not speak of a world beating company of the sort VMWare or Dell or EMC were but more like a high end supercomputer company that sells a few supercomputers a year and has a nice business that way.
9! The awful new numbers are materially decelerating. Why go w a company w decelerating fundamentals?
Just makes little sense to me. I am silly that way I guess.
Tinker