Cost of Revenue Trends: Oracle Corporation vs Shopify Inc.

Cost of Revenue: Oracle vs. Shopify

In the ever-evolving tech landscape, Oracle Corporation and Shopify Inc. have showcased distinct trajectories in their cost of revenue from 2014 to 2023. Oracle, a stalwart in enterprise software, maintained a steady cost of revenue, averaging around $9 billion annually. Notably, 2023 marked a significant surge, with costs rising by approximately 52% from 2022, reaching $13.6 billion. This spike could indicate strategic investments or increased operational expenses.

Conversely, Shopify, a leader in e-commerce solutions, exhibited a dynamic growth pattern. Starting with a modest $43 million in 2014, Shopify's cost of revenue skyrocketed to $3.5 billion by 2023, reflecting its rapid expansion and scaling efforts. This represents an astonishing increase of over 8,000% in less than a decade.

While Oracle's data for 2024 remains elusive, these trends underscore the contrasting growth strategies of these tech giants, offering valuable insights for investors and industry watchers.