Shopify Inc. or NetApp, Inc.: Who Manages SG&A Costs Better?

SG&A Cost Management: Shopify vs. NetApp

In the ever-evolving landscape of technology companies, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Over the past decade, NetApp, Inc. and Shopify Inc. have demonstrated contrasting approaches to SG&A cost management.

A Decade of Financial Insights

From 2014 to 2023, NetApp consistently maintained SG&A expenses around $2 billion annually, showcasing a stable cost management strategy. In contrast, Shopify's SG&A expenses surged from a modest $57 million in 2014 to nearly $1.9 billion by 2022, reflecting its rapid growth and expansion strategy.

Who Manages Better?

While NetApp's expenses remained relatively stable, Shopify's expenses grew by over 3,200% in the same period. This dramatic increase highlights Shopify's aggressive investment in growth, albeit with higher costs. The data for 2024 is incomplete, leaving room for speculation on future trends.

In conclusion, while NetApp exemplifies stability, Shopify's approach underscores a dynamic growth trajectory, each with its own set of challenges and opportunities.