Cost of Revenue Comparison: Splunk Inc. vs Telefonaktiebolaget LM Ericsson (publ)

Cost of Revenue: A Tale of Two Giants

In the ever-evolving tech landscape, understanding cost structures is crucial. Splunk Inc. and Telefonaktiebolaget LM Ericsson (publ) offer a fascinating comparison. From 2014 to 2023, Splunk's cost of revenue surged by over 2,300%, reflecting its rapid growth and expansion. In contrast, Ericsson's cost of revenue remained relatively stable, with a slight increase of around 11% over the same period.

Splunk's Meteoric Rise

Splunk's cost of revenue grew from approximately $36 million in 2014 to over $815 million in 2023, showcasing its aggressive market penetration and scaling efforts. This growth trajectory highlights Splunk's strategic investments in infrastructure and services.

Ericsson's Steady Course

Ericsson, a stalwart in telecommunications, maintained a consistent cost of revenue, peaking at around $162 billion in 2023. This stability underscores its established market presence and efficient cost management.

The data reveals contrasting strategies: Splunk's dynamic growth versus Ericsson's steady resilience.