I find when companies go through an investment cycle, that is...

I find when companies go through an investment cycle, that is they put on costs to grow faster, you either need to back the management team or run away. Coz its very hard to tell whether they are deploying capital efficiently or not. And its hard to tell what costs are "good costs" or "bad costs". That is both the challenge and opportunity when investing in technology businesses.

In this case, my choice is to back the management team because they have articulated the growth strategy and executed quite well up to this point.

They've been able to deliver ARR growth and GP margin expansion which is needed to get to their target scale and profitability (i.e. $80-100M revenue).

Additionally, they've demonstrated that the core business has pricing power which is a hallmark of great businesses.

And if I'm wrong about management's ability to control costs I think the board could easily appoint a new CEO in a few years whose mandate is to chop the costs down to the bone and show EBITDA margins of 30-40% so hopefully I won't lose all my $$$.