Managing SG&A Costs: A Tale of Two Companies

In the competitive world of software and technology, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, Salesforce, Inc. and Manhattan Associates, Inc. have demonstrated contrasting approaches to handling these costs.

A Decade of Financial Strategy

From 2014 to 2023, Salesforce's SG&A expenses surged by approximately 480%, reflecting its aggressive growth strategy. In contrast, Manhattan Associates maintained a more conservative increase of around 60%, showcasing a disciplined cost management approach.

The Bigger Picture

While Salesforce's expenses reached a peak of $16 billion in 2023, Manhattan Associates' expenses were significantly lower, peaking at $156 million. This stark difference highlights the diverse strategies employed by these companies. As we look to the future, the missing data for 2024 suggests a potential shift in trends, leaving room for speculation on how these companies will adapt their strategies.