Do not know the specifics of the size of the sales force but the company is very active in that area. A few days ago I received my annual report from the company and it is clear they are ramped up on monetization of product through aggressive sales force expansion. From the report:
"Sales and marketing expenses were $5.2 million and 0.2 million for the years ended December 31, 2014 and 2013, respectively. The significant increase in expense was the result of the Company expanding its sales, marketing and support staff throughout 2014."
Also, there is a table in the report I found quite interesting as a way of looking at the outlays the company is making. It shows major expense categories as a % of net revenue:
Net revenue: 100%
Cost of revenue: 60.4%
Gross profit: 39.6%
Sales and Marketing: 38.3%
Research and Development: 4.9%
General and Administrative: 85.9%
The expense categories exceed 100% so we operate at a loss. But Sales and Marketing expense in 2014 was 38.3% of net revenue and I suppose the amount spent is going up in 2015. Ideally, the amount spent on the sales force would not necessarily translate to an increase in the 38.3% of net revenue we see now as going forward we all hope revenue growth outstrips the growth in expense associated with sales. We shall see somewhere down the road.
Also, the expense for R&D in 2014 was low as a % of revenue which indicates the time for messing around in the lab has largely come to an end (although we all want to see the glassware on a chip).
Going forward I want to keep an eye on these percentages as I see them as an easy way to translate the success the company is having into the activity required to achieve that success. The mix should change as the company matures. And at some point, hopefully soon, the expense categories will not exceed or even add up to 100% of revenue. At that point the company will be making money and so will we.
