SG&A Efficiency: A Tale of Two Companies

In the ever-evolving landscape of corporate finance, understanding the efficiency of Selling, General, and Administrative (SG&A) expenses is crucial. This analysis compares two industry giants: SAP SE and Tyler Technologies, Inc., from 2014 to 2023.

SAP SE: A Steady Climb

SAP SE, a leader in enterprise software, has seen its SG&A expenses grow by approximately 88% over the past decade. Starting at 5.2 billion in 2014, it peaked at 11 billion in 2022, reflecting its expansive global operations and strategic investments.

Tyler Technologies: A Consistent Performer

Tyler Technologies, specializing in public sector software, has maintained a more modest growth trajectory. Its SG&A expenses increased by over 320%, from 108 million in 2014 to 458 million in 2023, showcasing its steady market penetration.

This comparison highlights the diverse strategies and growth patterns of these two tech titans, offering valuable insights into their operational efficiencies.