

“cost of revenue” sounds like “cost of goods sold” in a business with tangible products. Rather. It cost $6 of cloud to sell that $34 service
R&D can probably be amortized over the lifetime of the product, in this case the model’s useful sellable lifetime. But a chunk of that is renting compute from MS and the bill’s due.
Doesn’t sound any more fishy than any other business throwing $b around.

Oh totally that. That’s how all the big guys goose their numbers.