Who Optimizes SG&A Costs Better? Splunk Inc. or Teradyne, Inc.

Optimizing SG&A Costs: A Tale of Two Companies

In the competitive landscape of tech and manufacturing, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. Splunk Inc. and Teradyne, Inc. offer a fascinating study in contrasts from 2014 to 2023. Splunk's SG&A expenses surged by over 670%, peaking in 2023, reflecting its aggressive growth strategy. In contrast, Teradyne's expenses grew by approximately 79%, showcasing a more controlled approach.

While Splunk's rapid expansion is evident, Teradyne's steady increase suggests a focus on efficiency. Notably, Teradyne's expenses remained below 600 million USD, while Splunk's exceeded 2 billion USD by 2023. This disparity highlights differing corporate strategies: Splunk's investment in growth versus Teradyne's emphasis on cost control. As businesses navigate economic uncertainties, these insights into SG&A optimization offer valuable lessons in balancing growth and efficiency.