Selling, General, and Administrative Costs: Salesforce, Inc. vs International Business Machines Corporation

A Tale of Two Giants: Salesforce vs. IBM in SG&A Costs

In the ever-evolving landscape of technology, understanding the financial strategies of industry leaders is crucial. Over the past decade, Salesforce, Inc. and International Business Machines Corporation (IBM) have showcased contrasting approaches in managing their Selling, General, and Administrative (SG&A) expenses.

From 2014 to 2023, IBM's SG&A expenses have seen a steady decline, dropping by approximately 20% from 2014 to 2023. In contrast, Salesforce has experienced a dramatic increase, with expenses growing nearly sixfold over the same period. This divergence highlights Salesforce's aggressive growth strategy, while IBM focuses on streamlining operations.

The year 2024 marks a significant shift, with IBM's SG&A expenses surging by 64% compared to 2023, potentially indicating a strategic pivot. Meanwhile, Salesforce's expenses slightly decreased, suggesting a possible stabilization phase. These trends offer a fascinating glimpse into the strategic priorities of these tech titans.