Microsoft Corporation or Tyler Technologies, Inc.: Who Manages SG&A Costs Better?

A Tale of Two Tech Giants: SG&A Cost Management

In the ever-evolving tech landscape, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. Microsoft Corporation and Tyler Technologies, Inc. offer a fascinating study in contrasts. Over the past decade, Microsoft has seen its SG&A expenses grow by approximately 56%, from $20 billion in 2014 to over $32 billion in 2023. Meanwhile, Tyler Technologies, a smaller player, has managed a more modest increase of around 324%, from $108 million to $458 million in the same period.

Who Manages Better?

While Microsoft's absolute numbers are staggering, Tyler Technologies' growth rate in SG&A expenses is noteworthy. However, the absence of data for Tyler in 2024 suggests a need for cautious interpretation. This comparison highlights the diverse strategies employed by tech companies in managing operational costs, offering valuable insights for investors and industry analysts alike.