Meta Platforms, Inc. stock research
FY2023 Q3
Meta Platforms (META) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, leading to a higher gross margin as gross profit grew faster than cost of revenue. The company's filings discuss forward-looking statements and liquidity management without attributing the margin change to specific factors.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, leading to a higher gross margin as gross profit grew faster than cost of revenue. The company's filings discuss forward-looking statements and liquidity management without attributing the margin change to specific factors.
- The strongest observable margin driver is the increase in gross profit relative to revenue, which expanded the gross margin.
- Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue was slightly higher, resulting in a higher gross margin. Versus the same quarter a year ago, all metrics were higher, with gross margin showing a more pronounced improvement.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.8%
Gross profit
$27.9B
Revenue
$34.1B
Cost of revenue
$6.2B
Quarter-over-quarter change
+0.4 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% |
| Sep 30, 2023 | $34.1B | $27.9B | $6.2B | 81.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.4 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.
The strongest observable margin driver is the increase in gross profit relative to revenue, which expanded the gross margin.
Compared to the prior quarter, revenue and gross profit were higher, while cost of revenue was slightly higher, resulting in a higher gross margin. Versus the same quarter a year ago, all metrics were higher, with gross margin showing a more pronounced improvement.
Monitor the trend in cost of revenue relative to revenue, as changes in this ratio directly affect gross margin.