Why did DevvStream's operating expenses surge in Q3 2024?

The increase in operating expenses for DevvStream in Q3 2024 can be attributed to several factors:

1. **Inventory Scrap Costs and Purchase Price Variance**: The significant decrease in gross profit margin was primarily due to increased inventory scrap costs and an increase in purchase price variance from increasing vendor costs.
2. **Transition Costs**: The company mentioned that sales in Q3 2024 were impacted by the transition to a new distributor in the Middle East. Such transitions often involve initial setup costs and potential disruptions in sales, which can temporarily increase operating expenses.
3. **Microsoft Teams Certification**: The inability to certify with Microsoft Teams, despite functional compatibility, has posed sales headwinds. This could indicate additional expenses related to product development and testing to meet platform-specific requirements.

In summary, the surge in operating expenses is likely a result of a combination of increased costs related to inventory, vendor prices, transition costs, and certification expenses.