Cost of Revenue Trends: ServiceNow vs. MicroStrategy

In the ever-evolving landscape of technology, understanding cost dynamics is crucial. ServiceNow, Inc. and MicroStrategy Incorporated, two giants in the tech industry, have shown contrasting trends in their cost of revenue from 2014 to 2023. ServiceNow's cost of revenue has surged by over 670%, reflecting its aggressive growth strategy and expanding market presence. In contrast, MicroStrategy's cost of revenue has remained relatively stable, with a modest increase of about 20% over the same period.

A Decade of Divergence

ServiceNow's exponential growth is evident, with costs rising from approximately $250 million in 2014 to nearly $1.9 billion in 2023. Meanwhile, MicroStrategy's costs hovered around $100 million, indicating a more conservative approach. This divergence highlights the different strategic paths these companies have taken. As we look to 2024, ServiceNow's trajectory continues upward, while MicroStrategy's data remains elusive, leaving room for speculation.