Texas Instruments Incorporated or HubSpot, Inc.: Who Manages SG&A Costs Better?

Managing SG&A Costs: A Tale of Two Companies

In the competitive landscape of technology, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Texas Instruments Incorporated and HubSpot, Inc. offer a fascinating study in contrasts. Over the past decade, Texas Instruments has consistently maintained its SG&A expenses around $1.7 billion annually, showcasing a stable cost management strategy. In contrast, HubSpot's SG&A expenses have surged by over 1,200% from 2014 to 2023, reflecting its aggressive growth strategy.

A Decade of Change

From 2014 to 2023, HubSpot's SG&A expenses grew from approximately $102 million to $1.3 billion, highlighting its rapid expansion and investment in scaling operations. Meanwhile, Texas Instruments' expenses remained relatively stable, peaking at $1.8 billion in 2014 and maintaining a steady course thereafter. This stability suggests a mature approach to cost management, focusing on efficiency and optimization.

The Missing Year

Interestingly, data for HubSpot in 2024 is missing, leaving room for speculation on its future cost management strategies. Will it continue its upward trajectory, or will it stabilize like Texas Instruments? Only time will tell.