> It's a software company. Since there's virtually zero cost of goods, you expect a high margin.

Not always the case, especially if you have a large professional server component to your software (& sometimes SaaS). See, for example, Workday > http://www.sec.gov/Archives/edgar/data/1327811/0001193125123...

Gross margin is not the sole metric. However, high gross margin is not a given even at software companies.