Cost of Revenue: A Tale of Two Giants

In the ever-evolving tech landscape, Cisco Systems, Inc. and Block, Inc. (formerly Square) have carved distinct niches. Over the past decade, their cost of revenue trends reveal intriguing insights into their operational strategies. Cisco, a stalwart in networking, consistently maintained a high cost of revenue, peaking at approximately $21 billion in 2023. This reflects its expansive infrastructure and global reach. In contrast, Block, a fintech innovator, showcased a dynamic growth trajectory. From a modest $624 million in 2014, Block's cost of revenue surged over 2,000% to nearly $14 billion by 2023, underscoring its rapid expansion and adaptation in the digital payments arena. Notably, 2024 data for Block is missing, hinting at potential shifts or strategic pivots. This comparison not only highlights their financial strategies but also offers a glimpse into the broader tech industry's evolution.