I think I mentioned revenue recognition in another post. It works differently for SaaS companies. Net margins are also different when you are ramping up. Although SC has been in business for years, some don't remember the technology part is relatively new in comparison. The beauty of SaaS is, once you build the foundation, it's easy to scale at low cost.

If you take look at many SaaS companies even Salesforce, they had negative net income almost their entire lifespan. Why? Because management chose to grow the business.