Meta Platforms, Inc. stock research
FY2023 Q4
Meta Platforms (META) Gross Margin — Quarter Ended Dec 31, 2023
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved significantly from the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter but improved significantly from the same quarter last year.
- The strongest observable margin driver is the year-over-year improvement in gross margin, driven by a reduction in cost of revenue while revenue grew.
- Compared to the prior quarter, revenue and gross profit were higher, but gross margin was slightly lower. Compared to the same quarter last year, all metrics improved except cost of revenue, which was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.8%
Gross profit
$32.4B
Revenue
$40.1B
Cost of revenue
$7.7B
Quarter-over-quarter change
-1.0 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% |
| Dec 31, 2023 | $40.1B | $32.4B | $7.7B | 80.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-1.0 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 year-over-year improvement in gross margin, driven by a reduction in cost of revenue while revenue grew.
Compared to the prior quarter, revenue and gross profit were higher, but gross margin was slightly lower. Compared to the same quarter last year, all metrics improved except cost of revenue, which was lower.
Monitor the relationship between cost of revenue and revenue growth in upcoming quarters.