[jamesfzhang]

Revenue:

$148.5m (FY2013)

$215.1m (FY2014)

$319.5m (FY2015)

Net income:

$10.8m (FY2013)

$19.0m (FY2014)

$6.8m (FY2015)

[guiomie]

why is it down for FY2015 net income? And Aren't those margins kinda thin?

[nkohari]

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.

[nemo44x]

Not at all. They are investing their profits into scaling and growing the business.

[mbesto]

This. And no, software margins are not categorically thin (see SAP, Oracle, Microsoft, etc).

[colinbartlett]

I don't believe those margins are thin by public company standards. Perhaps we are spoiled by Apple who operates at insane margins?

[Nicholas_C]

Huge increases in R&D and marketing expenses, mostly.

[andrewcamel]

Doesn't the R&D ramp look a bit unusual? 57 -> 79 -> 141? Totally destroys their margins, right in the year when they must know they're going public?

[Nicholas_C]

As a percent of revenue the R&D increase doesn't look as crazy.

R&D as % of Revenue by year:

2013 39%

2014 37%

2015 44%

The marketing and sales expense goes from 13% to 21% of revenue in 2015

The growth in these line items really compress their margins in 2015.

[tkinom]

A few year back, I read about their sells process are 100% user self direct into their websites.

I wonder if they stay with that model or do more of the "enterprise sells" now.