Operational Costs Compared: SG&A Analysis of Shopify Inc. and Cognizant Technology Solutions Corporation

A Decade of SG&A: Shopify vs. Cognizant

In the ever-evolving tech landscape, operational efficiency is key. Over the past decade, Shopify Inc. and Cognizant Technology Solutions Corporation have showcased contrasting strategies in managing their Selling, General, and Administrative (SG&A) expenses. Cognizant, a stalwart in IT services, consistently maintained higher SG&A costs, peaking at approximately $3.5 billion in 2021. This reflects their expansive global operations and client-centric approach. In contrast, Shopify, a leader in e-commerce solutions, demonstrated a rapid increase in SG&A, growing from a modest $57 million in 2014 to nearly $1.9 billion by 2022. This 33-fold increase underscores Shopify's aggressive growth and market expansion strategy. As we navigate through 2023, these trends highlight the diverse paths companies take to balance growth and operational costs, offering valuable insights for investors and industry analysts alike.