Optimizing SG&A: A Tale of Two Companies

In the competitive world of business, managing Selling, General, and Administrative (SG&A) expenses is crucial for profitability. SAP SE and Ubiquiti Inc. offer a fascinating study in contrasts from 2014 to 2023. SAP SE, a global leader in enterprise software, consistently reported higher SG&A expenses, peaking at approximately $11 billion in 2022. This reflects their expansive global operations and extensive workforce.

Conversely, Ubiquiti Inc., known for its innovative networking technology, maintained a leaner SG&A structure. Their expenses grew from around $23 million in 2014 to $71 million in 2023, showcasing a more than threefold increase. Despite this growth, Ubiquiti's SG&A costs remain a fraction of SAP's, highlighting their efficient cost management.

This comparison underscores the diverse strategies companies employ to optimize operational costs, with SAP focusing on scale and Ubiquiti on efficiency.