Meta Platforms, Inc. stock research
FY2024 Q1
Meta Platforms (META) Gross Margin — Quarter Ended Mar 31, 2024
Revenue decreased from the prior quarter but increased from the same quarter a year earlier, while gross profit followed a similar directional pattern. Cost of revenue was lower than the prior quarter and slightly higher than a year ago, and gross margin improved compared with both periods.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue decreased from the prior quarter but increased from the same quarter a year earlier, while gross profit followed a similar directional pattern. Cost of revenue was lower than the prior quarter and slightly higher than a year ago, and gross margin improved compared with both periods.
- The most observable margin driver was the lower cost of revenue as a share of revenue, which strengthened the gross margin relative to both the prior quarter and the year-ago quarter.
- Compared with the immediately preceding quarter, revenue was lower and gross profit was lower, but gross margin was higher. Compared with the same quarter one year earlier, revenue and gross profit were higher, and gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.8%
Gross profit
$29.8B
Revenue
$36.5B
Cost of revenue
$6.6B
Quarter-over-quarter change
+1.0 pts
Year-over-year change
+3.1 pts
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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $36.5B | $29.8B | $6.6B | 81.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
+1.0 pts
Year-over-year change
Mar 31, 2023
+3.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver was the lower cost of revenue as a share of revenue, which strengthened the gross margin relative to both the prior quarter and the year-ago quarter.
Compared with the immediately preceding quarter, revenue was lower and gross profit was lower, but gross margin was higher. Compared with the same quarter one year earlier, revenue and gross profit were higher, and gross margin was also higher.
The filing notes that cash from operations was partly offset by capital expenditures and share repurchases; these outflows are items to monitor in future periods.