Meta Platforms, Inc. stock research
FY2023 Q1
Meta Platforms (META) Gross Margin — Quarter Ended Mar 31, 2023
Revenue declined from the prior quarter while cost of revenue decreased proportionally more, leading to gross margin expansion. Compared to a year ago, revenue and gross profit grew modestly with stable gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue declined from the prior quarter while cost of revenue decreased proportionally more, leading to gross margin expansion. Compared to a year ago, revenue and gross profit grew modestly with stable gross margin.
- The sequential improvement in gross margin was primarily driven by a reduction in cost of revenue which outpaced the decline in revenue.
- Revenue and gross profit were lower sequentially but higher year-over-year. Gross margin strengthened from the previous quarter and remained consistent with the prior year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.7%
Gross profit
$22.5B
Revenue
$28.6B
Cost of revenue
$6.1B
Quarter-over-quarter change
n/a
Year-over-year change
n/a
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 |
|---|---|---|---|---|
| Mar 31, 2023 | $28.6B | $22.5B | $6.1B | 78.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Year-ago quarter unavailable
n/a
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was primarily driven by a reduction in cost of revenue which outpaced the decline in revenue.
Revenue and gross profit were lower sequentially but higher year-over-year. Gross margin strengthened from the previous quarter and remained consistent with the prior year.
Monitor whether cost of revenue levels persist, as they supported margin improvement.