ServiceNow, Inc. or MicroStrategy Incorporated: Who Manages SG&A Costs Better?

ServiceNow vs. MicroStrategy: A Decade of SG&A Management

In the ever-evolving tech industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, ServiceNow, Inc. and MicroStrategy Incorporated have demonstrated contrasting approaches to SG&A cost management. From 2014 to 2023, ServiceNow's SG&A expenses surged by over 850%, reflecting its aggressive growth strategy. In contrast, MicroStrategy's expenses remained relatively stable, with a modest 18% decrease, indicating a more conservative fiscal approach.

ServiceNow's rapid expansion is evident, with its SG&A costs peaking at $4.16 billion in 2023, a stark contrast to MicroStrategy's $265 million. This disparity highlights ServiceNow's commitment to scaling operations, while MicroStrategy focuses on efficiency. As we look to 2024, ServiceNow's projected expenses continue to rise, whereas MicroStrategy's data remains unavailable, suggesting a potential shift in strategy. This analysis underscores the diverse strategies tech companies employ to balance growth and cost management.