Meta Platforms, Inc. stock research
FY2024 Q4
Meta Platforms (META) Gross Margin — Quarter Ended Dec 31, 2024
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter last year. Gross margin was slightly weaker than the prior quarter but improved relative to the same quarter a year ago.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue, gross profit, and cost of revenue all increased compared to the prior quarter and the same quarter last year. Gross margin was slightly weaker than the prior quarter but improved relative to the same quarter a year ago.
- The relationship between revenue and cost of revenue kept gross margin at a high level. Revenue growth outpaced cost of revenue growth on a year-over-year basis, while the quarter-over-quarter change was mixed.
- Compared to the prior quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, while gross margin was slightly lower. Compared to the same quarter a year ago, all metrics were higher, and gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.7%
Gross profit
$39.5B
Revenue
$48.4B
Cost of revenue
$8.8B
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+0.9 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $48.4B | $39.5B | $8.8B | 81.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.1 pts
Year-over-year change
Dec 31, 2023
+0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between revenue and cost of revenue kept gross margin at a high level. Revenue growth outpaced cost of revenue growth on a year-over-year basis, while the quarter-over-quarter change was mixed.
Compared to the prior quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, while gross margin was slightly lower. Compared to the same quarter a year ago, all metrics were higher, and gross margin was higher.
Monitor the trajectory of cost of revenue relative to revenue, as it directly influences gross margin.