Salesforce, Inc. stock research
FY2023 Q4
Salesforce (CRM) Gross Margin — Quarter Ended Jan 31, 2023
Revenue and gross profit both increased from the prior quarter and from the same quarter one year earlier. Cost of revenue was stable compared to the prior quarter, contributing to an improvement in gross margin.
Gross margin takeaway
Quarter ended Jan 31, 2023 · FY2023 Q4
Revenue and gross profit both increased from the prior quarter and from the same quarter one year earlier. Cost of revenue was stable compared to the prior quarter, contributing to an improvement in gross margin.
- Gross profit grew faster than revenue, resulting in a higher gross margin. The stable cost of revenue was the strongest observable factor supporting margin expansion.
- Compared to the prior quarter, gross margin improved; compared to the same quarter one year earlier, gross margin also improved. Revenue and gross profit were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.0%
Gross profit
$6.3B
Revenue
$8.4B
Cost of revenue
$2.1B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+2.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Apr 30, 2022 | $7.4B | $5.4B | $2.0B | 72.4% |
| Jul 31, 2022 | $7.7B | $5.6B | $2.1B | 72.4% |
| Oct 31, 2022 | $7.8B | $5.7B | $2.1B | 73.4% |
| Jan 31, 2023 | $8.4B | $6.3B | $2.1B | 75.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2022
+1.6 pts
Year-over-year change
FY2022 Q4
+2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew faster than revenue, resulting in a higher gross margin. The stable cost of revenue was the strongest observable factor supporting margin expansion.
Compared to the prior quarter, gross margin improved; compared to the same quarter one year earlier, gross margin also improved. Revenue and gross profit were higher in both comparisons.
Monitor cost of revenue trends, as its stability was central to the quarter's gross margin improvement.