Meta Platforms, Inc. stock research
FY2024 Q3
Meta Platforms (META) Gross Margin — Quarter Ended Sep 30, 2024
In the current quarter, revenue and gross profit both increased while cost of revenue rose modestly, leading to a slight improvement in gross margin compared to the prior quarter. Gross margin remained stable relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
In the current quarter, revenue and gross profit both increased while cost of revenue rose modestly, leading to a slight improvement in gross margin compared to the prior quarter. Gross margin remained stable relative to the same quarter one year earlier.
- The strongest observable margin driver is the relationship between cost of revenue and revenue growth. Cost of revenue increased less than revenue, allowing gross profit to expand at a faster pace and lifting the margin.
- Compared to the preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.8%
Gross profit
$33.2B
Revenue
$40.6B
Cost of revenue
$7.4B
Quarter-over-quarter change
+0.5 pts
Year-over-year change
+0.0 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $40.6B | $33.2B | $7.4B | 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, 2024
+0.5 pts
Year-over-year change
Sep 30, 2023
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between cost of revenue and revenue growth. Cost of revenue increased less than revenue, allowing gross profit to expand at a faster pace and lifting the margin.
Compared to the preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin was unchanged.
Monitor capital expenditure trends and share repurchase activity as described in the liquidity and capital resources discussion in the filing.