Cost of Revenue: A Tale of Two Companies

In the ever-evolving tech landscape, understanding cost structures is crucial. This chart compares the cost of revenue for VMware, Inc. and II-VI Incorporated from 2014 to 2023. Over this period, VMware's cost of revenue grew by approximately 240%, while II-VI Incorporated saw a staggering increase of over 670%.

A Decade of Growth

In 2014, VMware's cost of revenue was about 60% higher than II-VI's. However, by 2023, II-VI's cost of revenue had surpassed VMware's by nearly 43%. This shift highlights II-VI's aggressive expansion and investment in its operations.

Strategic Implications

For investors and analysts, these trends offer insights into each company's strategic priorities. VMware's steady growth reflects its focus on maintaining a balanced cost structure, while II-VI's rapid increase suggests a strategy centered on scaling and market penetration.