In case it isn’t obvious: SPENDING THIS MUCH OF TOP LINE REVENUE ON SALES AND MARKETING IS NEW . This is not business as usual. The higher gross margins generated by software and SaaS are enabling unprecedented spending on sales and marketing below the gross margin line. I read a study recently in which two economists tried to advance their preferred narrative by citing high gross margins that can exist in business today. Yes they are high in SaaS. No, that is not the whole story. Spending below the gross margin line on sales and marketing is far higher.