Salesforce, Inc. stock research
FY2024 Q4
Salesforce (CRM) Gross Margin — Quarter Ended Jan 31, 2024
In the current quarter, revenue increased and cost of revenue decreased compared to the prior quarter, resulting in a higher gross profit and an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit both rose while cost of revenue was relatively stable, leading to a gross margin that strengthened year-over-year.
Gross margin takeaway
Quarter ended Jan 31, 2024 · FY2024 Q4
In the current quarter, revenue increased and cost of revenue decreased compared to the prior quarter, resulting in a higher gross profit and an improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit both rose while cost of revenue was relatively stable, leading to a gross margin that strengthened year-over-year.
- Gross profit grew at a faster rate than revenue, while cost of revenue declined, creating a favorable impact on gross margin. The strongest observable driver is the combination of higher revenue and lower cost of revenue in the sequential comparison.
- Gross margin improved both sequentially and year-over-year, with the current quarter's margin higher than the immediately preceding quarter and the same quarter one year earlier. Revenue and gross profit were higher in both comparison periods, while cost of revenue was lower sequentially and stable year-over-year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
76.9%
Gross profit
$7.1B
Revenue
$9.3B
Cost of revenue
$2.1B
Quarter-over-quarter change
+1.6 pts
Year-over-year change
+1.9 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, 2023 | $8.2B | $6.1B | $2.1B | 74.2% |
| Jul 31, 2023 | $8.6B | $6.5B | $2.1B | 75.4% |
| Oct 31, 2023 | $8.7B | $6.6B | $2.2B | 75.3% |
| Jan 31, 2024 | $9.3B | $7.1B | $2.1B | 76.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 31, 2023
+1.6 pts
Year-over-year change
Jan 31, 2023
+1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit grew at a faster rate than revenue, while cost of revenue declined, creating a favorable impact on gross margin. The strongest observable driver is the combination of higher revenue and lower cost of revenue in the sequential comparison.
Gross margin improved both sequentially and year-over-year, with the current quarter's margin higher than the immediately preceding quarter and the same quarter one year earlier. Revenue and gross profit were higher in both comparison periods, while cost of revenue was lower sequentially and stable year-over-year.
Monitor the trend in cost of revenue, as its decline contributed significantly to the gross margin improvement in the sequential quarter.