Meta Platforms Inc. (META)
Net profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 62,360,000 | 55,539,000 | 51,434,000 | 45,757,000 | 39,097,000 | 29,733,000 | 22,545,000 | 21,444,000 | 23,200,000 | 28,832,000 | 33,631,000 | 37,338,000 | 39,370,000 | 40,304,000 | 38,956,000 | 33,740,000 | 29,145,000 | 25,275,000 | 23,520,000 | 20,958,000 |
| Revenue (ttm) | US$ in thousands | 163,810,000 | 155,720,000 | 149,140,000 | 141,953,000 | 134,089,000 | 126,404,000 | 120,105,000 | 117,039,000 | 116,352,000 | 117,959,000 | 119,255,000 | 119,510,000 | 117,773,000 | 112,186,000 | 104,646,000 | 94,256,000 | 85,823,000 | 78,849,000 | 75,031,000 | 73,231,000 |
| Net profit margin | 38.07% | 35.67% | 34.49% | 32.23% | 29.16% | 23.52% | 18.77% | 18.32% | 19.94% | 24.44% | 28.20% | 31.24% | 33.43% | 35.93% | 37.23% | 35.80% | 33.96% | 32.05% | 31.35% | 28.62% |
December 31, 2024 calculation
Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $62,360,000K ÷ $163,810,000K
= 38.07%
Net profit margin represents the percentage of revenue that translates into profit after all operating expenses, interest, taxes, and other costs have been deducted. Looking at the data provided for Meta Platforms Inc., we observe that the net profit margin has displayed fluctuations over the analyzed period.
From March 31, 2020, to December 31, 2021, Meta Platforms Inc. experienced a consistent increase in net profit margin, reaching a peak of 37.23% on June 30, 2021. This upward trend indicated the company's ability to effectively control costs and generate higher profits relative to its revenue during this period.
However, starting from September 30, 2021, the net profit margin began to decline gradually, dropping to 19.94% by December 31, 2022. This decrease suggests that Meta Platforms Inc. may have faced challenges in maintaining profitability, potentially due to rising expenses or changes in the revenue structure.
Despite the decline, there was a slight recovery in the net profit margin during the first half of 2023. However, from September 30, 2023, to December 31, 2024, there was a significant improvement in the net profit margin, reaching its highest point of 38.07% by the end of December 31, 2024. This increase indicates that Meta Platforms Inc. was able to enhance its profitability, potentially through cost-saving measures or revenue optimization strategies.
In conclusion, the analysis of Meta Platforms Inc.'s net profit margin demonstrates both periods of growth and decline, reflecting the company's ability to manage costs and generate profits efficiently. Fluctuations in the net profit margin highlight the dynamic nature of the company's financial performance and the importance of monitoring profitability metrics over time.
Peer comparison
Dec 31, 2024