Analyzing Cost of Revenue: ServiceNow, Inc. and Arista Networks, Inc.

In the ever-evolving tech industry, understanding the cost of revenue is crucial for evaluating a company's financial health. Over the past decade, ServiceNow, Inc. and Arista Networks, Inc. have shown significant growth in their cost of revenue, reflecting their expanding operations and market presence. From 2014 to 2023, Arista Networks saw a staggering increase of over 1,000%, while ServiceNow's cost of revenue grew by approximately 670%. This upward trend highlights their strategic investments in infrastructure and services to meet rising demand. Notably, in 2023, Arista Networks reported a cost of revenue of $2.23 billion, surpassing ServiceNow's $1.92 billion. However, ServiceNow's 2024 projection shows a continued rise to $2.29 billion, indicating robust growth despite missing data for Arista Networks. These insights underscore the dynamic nature of the tech sector and the importance of strategic financial planning.