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

META (Meta Platforms) Operating Margin % : 48.29% (As of Dec. 2024)


View and export this data going back to 2012. Start your Free Trial

What is Meta Platforms Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Meta Platforms's Operating Income for the three months ended in Dec. 2024 was $23,364 Mil. Meta Platforms's Revenue for the three months ended in Dec. 2024 was $48,385 Mil. Therefore, Meta Platforms's Operating Margin % for the quarter that ended in Dec. 2024 was 48.29%.

Warning Sign:

Meta Platforms Inc operating margin has been in a 5-year decline. The average rate of decline per year is -1.7%.

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

META' s Operating Margin % Range Over the Past 10 Years
Min: 24.82   Med: 40.33   Max: 49.7
Current: 42.18


META's Operating Margin % is ranked better than
94.41% of 572 companies
in the Interactive Media industry
Industry Median: 1.685 vs META: 42.18

Meta Platforms's 5-Year Average Operating Margin % Growth Rate was -1.70% per year.

Meta Platforms's Operating Income for the three months ended in Dec. 2024 was $23,364 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2024 was $69,379 Mil.


Meta Platforms Operating Margin % Historical Data

The historical data trend for Meta Platforms's Operating 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.

* Premium members only.

Meta Platforms Operating Margin % Chart

Meta Platforms Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 38.01 39.65 24.82 34.66 42.18

Meta Platforms Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40.85 37.90 38.00 42.75 48.29

Competitive Comparison of Meta Platforms's Operating Margin %

For the Internet Content & Information subindustry, Meta Platforms's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % Distribution in the Interactive Media Industry

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

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


;
;

Meta Platforms Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Meta Platforms's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=69380 / 164501
=42.18 %

Meta Platforms's Operating Margin % for the quarter that ended in Dec. 2024 is calculated as

Operating Margin %=Operating Income (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=23364 / 48385
=48.29 %

* 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.


Meta Platforms  (NAS:META) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Meta Platforms Operating Margin % Related Terms

Thank you for viewing the detailed overview of Meta Platforms's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Meta Platforms Business Description

Address
1 Meta Way, Menlo Park, CA, USA, 94025
Meta is the largest social media company in the world, boasting close to 4 billion monthly active users worldwide. The firm's "Family of Apps," its core business, consists of Facebook, Instagram, Messenger, and WhatsApp. End users can leverage these applications for a variety of different purposes, from keeping in touch with friends to following celebrities and running digital businesses for free. Meta packages customer data, gleaned from its application ecosystem and sells ads to digital advertisers. While the firm has been investing heavily in its Reality Labs business, it remains a very small part of Meta's overall sales.
Executives
Jennifer Newstead officer: VP and General Counsel C/O FACEBOOK, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Javier Olivan officer: Chief Operating Officer 62 RIDGE VIEW DRIVE, ATHERTON X1 94027
Christopher K Cox officer: Chief Product Officer C/O FACEBOOK, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Mark Zuckerberg director, 10 percent owner, officer: COB and CEO C/O META PLATFORMS, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Andrew Bosworth officer: Chief Technology Officer C/O META PLATFORMS INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Susan J Li officer: Chief Financial Officer ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
Peggy Alford director 435 TASSO STREET, PALO ALTO CA 94301
Nicholas Clegg officer: President, Global Affairs C/O META PLATFORMS INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Aaron Anderson officer: Chief Accounting Officer C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Sheryl Sandberg officer: Chief Operating Officer P.O. BOX 2929, SAN FRANCISCO CA 94126
Taylor Susan J.s. officer: Chief Accounting Officer C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Marne L. Levine officer: Chief Business Officer C/O CHEGG, INC., 3990 FREEDOM CIRCLE, SANTA CLARA CA 95054
David M. Wehner officer: Chief Financial Officer C/O FACEBOOK, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Tony Xu director C/O DOORDASH, INC., 303 2ND STREET, SOUTH TOWER, 8TH FLOOR, SAN FRANCISCO CA 94107
David B. Fischer officer: Chief Revenue Officer C/O FACEBOOK, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025