Meta Platforms (WBO:META) Gross Margin % : 80.82% (As of Dec. 2023)

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What is Meta Platforms Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Meta Platforms's Gross Profit for the three months ended in Dec. 2023 was €29,725 Mil. Meta Platforms's Revenue for the three months ended in Dec. 2023 was €36,782 Mil. Therefore, Meta Platforms's Gross Margin % for the quarter that ended in Dec. 2023 was 80.82%.

The historical rank and industry rank for Meta Platforms's Gross Margin % or its related term are showing as below:

WBO:META' s Gross Margin % Range Over the Past 10 Years
Min: 78.35 Med: 82.34 Max: 86.58
Current: 80.76

During the past 13 years, the highest Gross Margin % of Meta Platforms was 86.58%. The lowest was 78.35%. And the median was 82.34%.

WBO:META's Gross Margin % is ranked better than
68.97% of 522 companies
in the Interactive Media industry
Industry Median: 60.98 vs WBO:META: 80.76

Meta Platforms had a gross margin of 80.82% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Meta Platforms was -0.80% per year.

Meta Platforms Gross Margin % Historical Data

The historical data trend for Meta Platforms's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Meta Platforms Gross Margin % Chart

Meta Platforms Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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81.94

80.58

80.79

78.35

80.76

Meta Platforms Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															74.08	78.68	81.42	81.81	80.82

Competitive Comparison of Meta Platforms's Gross Margin %

For the Internet Content & Information subindustry, Meta Platforms's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Meta Platforms's Gross Margin % Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Meta Platforms's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Meta Platforms's Gross Margin % falls into.

Meta Platforms Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Meta Platforms's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	99900.7	/	123705.134
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(123705.134 - 23804.403)	/	123705.134
	=	80.76 %

Meta Platforms's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	29725.5	/	36781.787
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(36781.787 - 7056.315)	/	36781.787
	=	80.82 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Meta Platforms (WBO:META) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Meta Platforms had a gross margin of 80.82% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Meta Platforms Gross Margin % Related Terms

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Meta Platforms (WBO:META) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Meta Platforms Inc (WBO:META) » Definitions » Gross Margin %

Comparable Companies

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META:USA META:Peru META:Mexico FB:Italy FB2Ad:UK 0QZI:UK FB2A:Germany METACL:Chile META:Canada M1TA34:Brazil

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Meta is the world's largest online social network, with 3.8 billion family of apps monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. The firm's ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Users can access Facebook on mobile devices and desktops. Advertising revenue represents more than 90% of the firm's total revenue, with more than 45% coming from the U.S. and Canada and over 20% from Europe.