Meta Platforms, Inc. stock research
FY2024 Q2
Meta Platforms (META) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the immediate prior quarter, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but remained stable compared to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the immediate prior quarter, while cost of revenue also rose. Gross margin weakened slightly from the prior quarter but remained stable compared to the same quarter one year earlier.
- The strongest observable driver of gross margin in the current period is revenue growth outpacing the increase in cost of revenue, as the proportion of cost relative to revenue remained largely consistent year over year.
- Compared to the immediately preceding quarter, gross margin was slightly lower as cost of revenue increased more in proportion to revenue. Relative to the same quarter one year earlier, gross margin was essentially stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.3%
Gross profit
$31.8B
Revenue
$39.1B
Cost of revenue
$7.3B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-0.1 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $39.1B | $31.8B | $7.3B | 81.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-0.5 pts
Year-over-year change
Jun 30, 2023
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin in the current period is revenue growth outpacing the increase in cost of revenue, as the proportion of cost relative to revenue remained largely consistent year over year.
Compared to the immediately preceding quarter, gross margin was slightly lower as cost of revenue increased more in proportion to revenue. Relative to the same quarter one year earlier, gross margin was essentially stable.
Monitor the relationship between revenue growth and cost of revenue growth in upcoming periods to detect whether the recent slight margin weakening persists.