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Gross Margin Benchmarks

Public SaaS Companies — 29 companies tracked

Median Gross Margin75.5%

Excellent (75%+)15

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Gross Margin — Top 20 Companies

Sorted highest to lowest. Dashed line = median.

Ranked Gross Margin Data

#	Company	Ticker	Sector	Gross Margin	vs. Median
1	WI Workday, Inc.	WDAY	HR Tech	98.8%	+23.3pp
2	GI GitLab Inc.	GTLB	DevTools & Observability	87.4%	+11.8pp
3	ZT ZoomInfo Technologies Inc.	ZI	Sales Intelligence	84.0%	+8.5pp
4	HI HubSpot, Inc.	HUBS	Marketing Tech	83.8%	+8.2pp
5	BH Bill.com Holdings, Inc.	BILL	Fintech	81.4%	+5.9pp
6	DI Dropbox, Inc.	DBX	Cloud Storage	80.1%	+4.6pp
7	DI Datadog, Inc.	DDOG	DevTools & Observability	80.0%	+4.4pp
8	BI Box, Inc.	BOX	Cloud Storage	79.2%	+3.7pp
9	TT The Trade Desk, Inc.	TTD	Marketing Tech	78.6%	+3.1pp
10	SI Salesforce, Inc.	CRM	CRM & Sales	77.7%	+2.2pp
11	SI ServiceNow, Inc.	NOW	IT Service Management	77.5%	+2.0pp
12	OI Okta, Inc.	OKTA	Security	77.4%	+1.8pp
13	ZC Zoom Communications, Inc.	ZM	Communications	77.0%	+1.5pp
14	PI Pegasystems Inc.	PEGA	Low-Code / No-Code	75.9%	+0.3pp
15	VS Veeva Systems Inc.	VEEV	Vertical SaaS	75.5%	+0.0pp
—	Median Benchmark	—	All Sectors	75.5%	—
16	DI Domo, Inc.	DOMO	Data & Analytics	75.0%	-0.5pp
17	PH Paylocity Holding Corporation	PCTY	HR Tech	74.5%	-1.0pp
18	EN Elastic N.V.	ESTC	DevTools & Observability	74.4%	-1.1pp
19	CI Confluent, Inc.	CFLT	Data & Analytics	74.3%	-1.2pp
20	SI SentinelOne, Inc.	S	Security	74.1%	-1.4pp
21	NR New Relic, Inc.	NEWR	DevTools & Observability	73.4%	-2.2pp
22	AC Appian Corporation	APPN	Low-Code / No-Code	72.5%	-3.0pp
23	MI MongoDB, Inc.	MDB	Data & Analytics	71.8%	-3.8pp
24	RI RingCentral, Inc.	RNG	Communications	71.2%	-4.3pp
25	SI Snowflake Inc.	SNOW	Data & Analytics	67.2%	-8.4pp
26	DH DigitalOcean Holdings, Inc.	DOCN	Cloud Infrastructure	59.9%	-15.7pp
27	TI Twilio Inc.	TWLO	Communications	48.9%	-26.6pp
28	WI WEX Inc.	WEX	Fintech	40.4%	-35.2pp
29	TI Toast, Inc.	TOST	Vertical SaaS	25.9%	-49.6pp

What is Gross Margin?

Gross margin is gross profit — revenue minus cost of goods sold (COGS) — expressed as a percentage of revenue. For SaaS businesses, COGS typically includes hosting infrastructure, customer support, and third-party software costs. It is the most direct indicator of a software product's unit economics.

Formula: Gross Margin = (Revenue − COGS) / Revenue × 100

What good looks like: Best-in-class public SaaS companies maintain gross margins of 75–85%. Margins below 60% suggest higher infrastructure or services costs, often seen in companies with large professional services components or early-stage cloud migration costs. Gross margin is a prerequisite for long-term profitability — a company cannot FCF-positive without a healthy gross margin.