David Rosenthal: uncertainty

Transcript context

…The only one that beats them is Google at 45%. Think about all the money that Google is just dumping into R&D for all these future-looking projects, and they’re a core technology company. On the one hand, duh, because Epic doesn’t really buy other companies or spend any money on sales and marketing, and they keep their G&A low, so what are their other expenses? Of course, it’s going to be high on R&D. Unlike most companies, they spend zero on sales and marketing. If they classify those eight people that they employ as “salespeople” as headcount, maybe they spend, I don’t know, not much. Small. But I think to get to this point that we’ve been hitting in a bunch of different ways, as long as you can win deals in the short-term early days without sales and marketing spend, and you can just spend all of your costs or as much as possible on R&D, that R&D does compound over time to give you a big competitive advantage later in life that other forms of spend do not.…

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