Who Optimizes SG&A Costs Better? SAP SE or ServiceNow, Inc.

Optimizing SG&A Costs: A Tale of Two Giants

In the competitive world of enterprise software, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Over the past decade, SAP SE and ServiceNow, Inc. have taken different paths in optimizing these costs. From 2014 to 2023, SAP SE's SG&A expenses grew by approximately 88%, peaking in 2022. In contrast, ServiceNow, Inc. saw a staggering increase of over 900% in the same period, reflecting its rapid expansion and market penetration.

A Decade of Change

SAP SE, a stalwart in the industry, maintained a steady growth in SG&A expenses, with a notable dip in 2020. Meanwhile, ServiceNow, Inc., a relative newcomer, consistently increased its spending, highlighting its aggressive growth strategy. The data for 2024 is incomplete, but the trends suggest a continued divergence in their approaches. This analysis underscores the strategic choices companies make in balancing growth and cost management.