Salesforce, Inc. stock research
FY2024 Q1
Salesforce (CRM) Gross Margin — Quarter Ended Apr 30, 2023
Revenue decreased from the prior quarter but increased year-over-year, while gross profit followed a similar pattern. Gross margin weakened sequentially but improved compared to the same quarter last year.
Gross margin takeaway
Quarter ended Apr 30, 2023 · FY2024 Q1
Revenue decreased from the prior quarter but increased year-over-year, while gross profit followed a similar pattern. Gross margin weakened sequentially but improved compared to the same quarter last year.
- Gross margin weakened sequentially primarily because gross profit declined slightly while cost of revenue remained unchanged, compressing the margin rate. The year-over-year improvement reflects a higher gross profit relative to cost of revenue.
- Compared to the prior quarter, revenue and gross profit were lower, with cost of revenue stable, resulting in a weakened gross margin. Versus the same quarter a year earlier, all key metrics—revenue, gross profit, and gross margin—were higher, with cost of revenue showing a modest increase.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
74.2%
Gross profit
$6.1B
Revenue
$8.2B
Cost of revenue
$2.1B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+1.8 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 |
|---|---|---|---|---|
| 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% |
| Apr 30, 2023 | $8.2B | $6.1B | $2.1B | 74.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 31, 2023
-0.7 pts
Year-over-year change
Apr 30, 2022
+1.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin weakened sequentially primarily because gross profit declined slightly while cost of revenue remained unchanged, compressing the margin rate. The year-over-year improvement reflects a higher gross profit relative to cost of revenue.
Compared to the prior quarter, revenue and gross profit were lower, with cost of revenue stable, resulting in a weakened gross margin. Versus the same quarter a year earlier, all key metrics—revenue, gross profit, and gross margin—were higher, with cost of revenue showing a modest increase.
Monitor the trajectory of cost of revenue relative to revenue, as unchanged sequential cost of revenue amid lower revenue directly impacted margin.