Stock Analysis on Net
Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

Common-Size Income Statement 
Quarterly Data

Meta Platforms Inc., common-size consolidated income statement (quarterly data)

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3 months ended: Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of revenue -17.89 -18.27 -18.17 -18.70 -18.21 -19.19 -18.19 -18.58 -21.32 -25.92 -20.62 -18.01 -21.52 -18.85 -19.89 -18.57 -19.61 -18.56 -19.53 -20.49 -19.50
Gross profit 82.11% 81.73% 81.83% 81.30% 81.79% 80.81% 81.81% 81.42% 78.68% 74.08% 79.38% 81.99% 78.48% 81.15% 80.11% 81.43% 80.39% 81.44% 80.47% 79.51% 80.50%
Research and development -28.71 -25.17 -27.54 -26.97 -27.37 -26.22 -27.06 -29.20 -32.75 -30.38 -33.09 -30.15 -27.62 -20.93 -21.77 -20.97 -19.86 -18.55 -22.18 -23.88 -22.64
Marketing and sales -6.52 -6.70 -6.95 -6.96 -7.03 -8.04 -8.43 -9.86 -10.63 -14.22 -13.64 -12.47 -11.87 -13.03 -12.25 -11.21 -10.86 -11.69 -12.50 -15.20 -15.71
General and administrative -5.39 -1.57 -4.59 -9.36 -9.48 -5.71 -6.06 -13.01 -10.07 -9.59 -12.21 -10.36 -8.46 -9.82 -10.16 -6.73 -6.20 -5.69 -8.34 -8.52 -8.92
Income from operations 41.49% 48.29% 42.75% 38.00% 37.90% 40.85% 40.26% 29.35% 25.23% 19.89% 20.44% 29.00% 30.54% 37.38% 35.93% 42.53% 43.48% 45.51% 37.45% 31.91% 33.22%
Interest and other income (expense), net 1.95 0.39 1.16 0.66 1.00 1.06 0.80 -0.31 0.28 -0.77 -0.32 -0.60 1.38 0.35 0.49 0.50 0.48 1.00 0.43 0.90 -0.18
Income before provision for income taxes 43.44% 48.68% 43.91% 38.66% 38.91% 41.90% 41.06% 29.04% 25.51% 19.12% 20.12% 28.40% 31.92% 37.73% 36.42% 43.03% 43.95% 46.51% 37.88% 32.81% 33.04%
Provision for income taxes -4.11 -5.61 -5.26 -4.20 -4.98 -6.96 -7.14 -4.70 -5.58 -4.65 -4.26 -5.20 -5.17 -7.18 -4.73 -7.29 -7.66 -6.54 -1.34 -5.10 -5.41
Net income 39.33% 43.07% 38.65% 34.46% 33.93% 34.95% 33.92% 24.34% 19.93% 14.47% 15.86% 23.20% 26.75% 30.55% 31.69% 35.75% 36.29% 39.97% 36.54% 27.71% 27.64%

Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).

Cost of Revenue
The cost of revenue as a percentage of total revenue has exhibited notable fluctuations over the periods analyzed. Initially, it ranged around -18% to -20%, with peaks reaching nearly -26% at the end of 2022. This indicates variable efficiency in managing direct costs associated with producing goods or services. Recently, the cost of revenue trend has moderated, stabilizing around the -18% range by early 2025.
Gross Profit
Gross profit margins have generally remained strong throughout the periods, fluctuating mostly between 74% and 82%. There was a dip at the end of 2022 to approximately 74%, likely reflecting increased direct costs during that time. However, margins recovered subsequently, trending upward to above 82% in the latest periods, signaling improved profitability in core activities relative to revenue.
Research and Development (R&D)
R&D expenses have demonstrated significant volatility, with a rising trend from around -18.5% in early 2020 to a peak exceeding -33% by late 2022. This suggests increased investment in innovation or product development during that period. Although a slight reduction follows afterward, the expenses remain elevated at around -28% in early 2025, indicating sustained commitment to R&D.
Marketing and Sales
Marketing and sales expenses have shown a consistent downward trend over the entire timeframe. Starting at approximately -15.7% at the beginning of 2020, these costs have steadily declined to around -6.5% by early 2025. This trend implies improved marketing efficiency or strategic shifts reducing spending relative to revenue.
General and Administrative (G&A)
General and administrative costs have been more volatile, initially around -9% early in 2020, with several fluctuations including a notable spike beyond -13% in mid-2023. The latest data show a decline with values between approximately -1.5% and -5.5%, suggesting efforts to control overheads or structural changes affecting administrative expenses.
Income from Operations
Operating income margins have fluctuated significantly, reaching their highest levels near 46.5% at the end of 2020. Subsequently, these margins dipped notably to near 19-20% at the end of 2022, coinciding with higher cost and expense ratios. Recovery occurred toward the end of 2024 and early 2025, where margins improved to above 40%, indicating strengthened operational profitability.
Interest and Other Income (Expense), Net
Interest and other income or expenses as a percentage of revenue have varied across the periods, oscillating between negative and positive values. Notably, there was a positive peak exceeding 1.3% in early 2022 and late 2024, indicating occasional contributions from non-operating activities. The trend appears inconsistent but with a moderate overall positive lean in the recent quarters.
Income Before Provision for Income Taxes
Pre-tax income margins closely mirror operating income trends, with high points near 46.5% at the end of 2020, followed by decreases to approximately 19% by late 2022. The margins recover to roughly 43-49% in the latest periods, aligning with improved operational performance and net income trends.
Provision for Income Taxes
The tax provision as a percentage of revenue has been relatively stable, fluctuating between approximately -1.3% and -7.7%. There does not appear to be a clear directional trend, although tax burden showed some increases around early 2021 and late 2023. In recent quarters, the provision stabilizes around -4% to -5%, suggesting consistent tax rates relative to income.
Net Income
Net income margins follow the general pattern of profitability indicators, with peaks near 40% at the end of 2020. There was a pronounced decline in net income margins toward the end of 2022, dropping as low as around 14-16%. Following this trough, net income margins have steadily increased to levels approaching 39-43% by early 2025, reflecting a strong recovery in overall profitability.