> The losses are scaling with revenue because increase in (expected) revenue increases valuation which increases compensation.

My original point around equity is that if you pay a substantial fraction of comp in this form, then leaving it out of expenses is pretty bizarre.

Is it your contention that the equity grants are the cause of their increasing losses?

I believe that this is probably not true at all, it's more likely to be S&M (salespeople scale as N not log(N) like engineering/product) particularly given that the product requires tuning for lots of companies (hence all the FDE hires).

More generally, the training costs seem to be increasing which is bad for their future profitability.