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

Analyzing Cost of Revenue: ServiceNow vs. VMware

In the ever-evolving tech landscape, understanding the cost of revenue is crucial for assessing a company's financial health. Over the past decade, ServiceNow, Inc. and VMware, Inc. have shown significant growth in their cost of revenue, reflecting their expanding operations and market reach. From 2014 to 2023, ServiceNow's cost of revenue surged by over 800%, highlighting its aggressive expansion strategy. Meanwhile, VMware's cost of revenue increased by approximately 240%, indicating steady growth in its established market.

Key Insights

• ServiceNow's Growth: ServiceNow's cost of revenue grew from $248 million in 2014 to $1.921 billion in 2023, showcasing its rapid scaling.
• VMware's Stability: VMware's cost of revenue rose from $730 million in 2014 to $2.482 billion in 2023, reflecting its consistent market presence.
• Data Gaps: Notably, 2024 data for VMware is missing, suggesting potential reporting delays or strategic shifts.

These trends underscore the dynamic nature of the tech industry, where companies must balance growth with cost efficiency.