Analyzing Cost of Revenue: ServiceNow, Inc. and Ubiquiti Inc.

Analyzing Cost of Revenue: ServiceNow, Inc. vs. Ubiquiti Inc.

In the ever-evolving tech industry, understanding the cost of revenue is crucial for evaluating a company's financial health. This analysis focuses on ServiceNow, Inc. and Ubiquiti Inc., two prominent players in the sector, from 2014 to 2024. Over this decade, ServiceNow's cost of revenue surged by approximately 820%, reflecting its aggressive growth strategy and expanding market presence. In contrast, Ubiquiti Inc. experienced a more modest increase of around 270%, indicating a steady yet less aggressive expansion.

Key Insights

• ServiceNow, Inc.: Starting at 25% of its 2024 cost in 2014, ServiceNow's cost of revenue highlights its rapid scaling and investment in infrastructure.
• Ubiquiti Inc.: With a more conservative growth trajectory, Ubiquiti's cost of revenue increased steadily, maintaining a consistent growth pattern.

This comparative analysis underscores the diverse strategies employed by tech companies in managing their operational costs.