SG&A Efficiency Analysis: Comparing Shopify Inc. and Ubiquiti Inc.

SG&A Efficiency: A Tale of Two Companies

In the ever-evolving landscape of technology, understanding a company's operational efficiency is crucial. This analysis delves into the Selling, General, and Administrative (SG&A) expenses of Shopify Inc. and Ubiquiti Inc. over the past decade.

Shopify Inc.: A Growth Story

Since 2014, Shopify has seen its SG&A expenses skyrocket, reflecting its rapid expansion. From a modest $57 million in 2014, expenses surged to nearly $1.94 billion by 2022, marking an increase of over 3,300%. This growth underscores Shopify's aggressive investment in scaling its operations and market presence.

Ubiquiti Inc.: Steady and Strategic

In contrast, Ubiquiti Inc. has maintained a more conservative approach. Its SG&A expenses grew from $23 million in 2014 to approximately $81 million in 2024, a more measured increase of around 250%. This reflects Ubiquiti's focus on maintaining efficiency while expanding its product offerings.

Conclusion

While Shopify's strategy highlights rapid growth, Ubiquiti's approach emphasizes steady, strategic expansion. Both paths offer valuable insights into managing operational costs in the tech industry.