R&D (Research & Development)
Also called Research & Development
R&D is a section in Operating Expenses, along with G&A (General & Administrative) and S&M (Sales & Marketing).
Expenses related to developing new products are categorized under R&D.
In the room
R&D is the line that separates a growth story from a cash cow. Heavy R&D depresses today's EBITDA to buy tomorrow's revenue, which is why software companies get valued on revenue multiples instead.