ServiceNow, Inc. or Garmin Ltd.: Who Manages SG&A Costs Better?

Navigating SG&A Costs: ServiceNow vs. Garmin

In the competitive landscape of technology and consumer electronics, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, ServiceNow, Inc. and Garmin Ltd. have showcased contrasting strategies in handling these costs. From 2014 to 2023, ServiceNow's SG&A expenses surged by over 850%, reflecting its aggressive growth and expansion strategy. In contrast, Garmin's expenses grew by approximately 95%, indicating a more stable and controlled approach.

ServiceNow's rapid increase in SG&A costs aligns with its ambitious market penetration and product development efforts. Meanwhile, Garmin's steady rise suggests a focus on maintaining operational efficiency while expanding its product lines. As of 2023, ServiceNow's SG&A expenses were nearly four times higher than Garmin's, highlighting the divergent paths these companies have taken. The data for 2024 is incomplete, but the trends suggest continued strategic divergence.