Meta Platforms, Inc. stock research
FY2023 Q2
Meta Platforms (META) Gross Margin — Quarter Ended Jun 30, 2023
Revenue and gross profit were higher sequentially and year-over-year, while cost of revenue was lower sequentially but higher year-over-year. Gross margin improved versus the prior quarter but weakened compared with the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue and gross profit were higher sequentially and year-over-year, while cost of revenue was lower sequentially but higher year-over-year. Gross margin improved versus the prior quarter but weakened compared with the same quarter one year earlier.
- Revenue growth outpaced cost of revenue growth sequentially, contributing to an improved gross margin. Compared with the year-ago period, cost of revenue increased more than revenue, resulting in a lower gross margin.
- Sequentially, gross margin improved from the prior quarter. Year-over-year, gross margin weakened relative to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.4%
Gross profit
$26.1B
Revenue
$32.0B
Cost of revenue
$5.9B
Quarter-over-quarter change
+2.7 pts
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% |
| Jun 30, 2023 | $32.0B | $26.1B | $5.9B | 81.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+2.7 pts
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.
Revenue growth outpaced cost of revenue growth sequentially, contributing to an improved gross margin. Compared with the year-ago period, cost of revenue increased more than revenue, resulting in a lower gross margin.
Sequentially, gross margin improved from the prior quarter. Year-over-year, gross margin weakened relative to the same quarter one year earlier.
Monitor the trajectory of cost of revenue relative to revenue, as its year-over-year growth exceeded revenue growth.