High gross margins is a good thing and usually means high P/S multiple. However, it looks like it's not always consistent. Companies tend to include different things as part of their cost of revenue. For example, Upstart don't even report cost of revenue, like it's zero. Is it really zero? What about computing cost? I'm assuming they report it as part of their product dev cost, but some other companies might not. How do know the real gross margins of a company?
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