Salesforce (CRM) Gross Margin — Quarter Ended Oct 31, 2024

Revenue and gross profit both increased from the prior quarter and from the same quarter last year. Cost of revenue decreased over both periods, driving gross margin higher.

Gross margin takeaway

Quarter ended Oct 31, 2024 · FY2025 Q3

Revenue and gross profit both increased from the prior quarter and from the same quarter last year. Cost of revenue decreased over both periods, driving gross margin higher.

The combination of rising revenue and declining cost of revenue was the primary driver of gross margin expansion.
Gross margin strengthened compared to the immediately preceding quarter and improved significantly from the same quarter one year earlier.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

77.7%

Gross profit

$7.3B

Revenue

$9.4B

Cost of revenue

$2.1B

Quarter-over-quarter change

+0.9 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
Jan 31, 2024	$9.3B	$7.1B	$2.1B	76.9%
Apr 30, 2024	$9.1B	$7.0B	$2.2B	76.3%
Jul 31, 2024	$9.3B	$7.2B	$2.2B	76.8%
Oct 31, 2024	$9.4B	$7.3B	$2.1B	77.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jul 31, 2024

+0.9 pts

Year-over-year change

Oct 31, 2023

+2.4 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The combination of rising revenue and declining cost of revenue was the primary driver of gross margin expansion.

Gross margin strengthened compared to the immediately preceding quarter and improved significantly from the same quarter one year earlier.

Monitor cost of revenue trends, as its reduction contributed to margin improvement.