Optimizing SG&A Costs: A Tale of Two Tech Giants

In the competitive world of technology, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Microsoft Corporation and Workday, Inc. have taken different paths in this regard over the past decade. From 2014 to 2024, Microsoft's SG&A expenses have grown by approximately 56%, reflecting its expansive growth strategy. In contrast, Workday's SG&A costs have surged by over 980%, indicating its aggressive market penetration efforts.

A Decade of Financial Strategy

Microsoft's steady increase in SG&A expenses, from $20 billion in 2014 to over $32 billion in 2024, showcases its focus on maintaining a robust operational framework. Meanwhile, Workday's rise from $263 million to nearly $2.8 billion in the same period highlights its rapid scaling and investment in sales and marketing. This comparison underscores the diverse strategies employed by these tech leaders to optimize their operational costs while pursuing growth.