Cost of Revenue: Key Insights for ServiceNow, Inc. and Microchip Technology Incorporated

Cost of Revenue: A Comparative Analysis of ServiceNow and Microchip Technology

In the ever-evolving tech industry, understanding the cost of revenue is crucial for evaluating a company's financial health. This analysis delves into the cost of revenue trends for ServiceNow, Inc. and Microchip Technology Incorporated from 2014 to 2024. Over this decade, Microchip Technology's cost of revenue surged by approximately 229%, peaking in 2023. Meanwhile, ServiceNow experienced a remarkable increase of around 819%, reflecting its rapid growth trajectory.

Key Insights

• Microchip Technology: Starting at $802 million in 2014, the cost of revenue reached $2.74 billion in 2023, showcasing a steady upward trend.
• ServiceNow: From a modest $249 million in 2014, the cost of revenue climbed to $2.29 billion by 2024, highlighting its aggressive expansion strategy.

These insights underscore the dynamic nature of the tech sector, where strategic investments in revenue generation are pivotal for sustained growth.