Part 3/7:
Despite its strong user base, SurveyMonkey's growth metrics present a cause for concern. With a reported revenue growth of just 5-6% last year, total revenue reached around $220 million. The company's financial health indicates a troubling disparity between stagnant growth and increasing operational costs. For instance, Research and Development (R&D) expenses surged by 40%, contributing to operating losses. This phenomenon raises questions about where and how these resources are allocated. With gross margins at 70%, the losses become more perplexing, especially when weighed against substantial interest payments on debt that significantly impact the bottom line.