Direct Answer
37 SEC filers are classified under the Standard Industrial Classification code that describes the interactive media & services industry, and their latest annual reports show $645.5 billion of combined revenue and a median operating margin of -9.0%. Investors should still evaluate its revenue model, industry-specific KPIs, valuation framework and the risks that can change the group's economics.
Industry Overview
Interactive media and services companies run search, social, video and community platforms and earn mainly from advertising, subscriptions and commerce. Results follow user engagement and the value of ad targeting. The first numbers to compare across companies here are daily or monthly active users, average revenue per user and ad impressions and price.
Key Industry Metrics
- Daily or monthly active users: People using the platforms in a day or month. Growth shows an expanding audience; the daily-to-monthly ratio indicates how habitual the use is.
- Average revenue per user: Revenue divided by active users. Large differences between regions mean user growth in lower-income regions can dilute the average even as total revenue grows.
- Ad impressions and price: The number of ads shown and the price per ad. Revenue growth from price signals demand and better targeting; growth from volume alone can mean cheaper inventory.
- Operating margin: Operating profit as a share of revenue. For platforms it reflects spending on infrastructure and content moderation relative to advertising income.
- Capital spending on infrastructure: Investment in data centers, servers and networks. It rises with artificial intelligence and video, so compare it with revenue growth to see if spending is being converted into income.
Primary Macro Drivers
- Digital ad budgets: Advertisers fund these platforms, so budgets set ad impressions, pricing and revenue per user and swing with the economy.
- User engagement and time spent: More time on the platform creates more ad slots and better data, supporting average revenue per user and impressions.
- Competition for attention: Rival apps and formats compete for the same hours, so shifts in attention affect active users and engagement per user.
- Privacy and regulation: Laws on data use and platform behavior can limit targeting and add costs, affecting ad pricing and operating margin.
Major Risks
- Regulatory and antitrust action: Authorities can fine, restrict features or require structural changes; watch litigation notes, remedies and effects on revenue per user.
- Ad cycle sensitivity: Brands cut budgets early in slowdowns, so revenue can fall faster than costs; watch ad pricing, impressions and operating margin.
- Platform and algorithm changes: Ranking or product changes can alter reach and engagement; watch active users, time spent and revenue per user after each change.
- Content moderation costs: Policing content takes staff and technology, so costs rise with scale; watch moderation spend, advertiser pullbacks and regulatory orders.
Industry Characteristics
| Characteristic | Profile |
|---|---|
| Cyclicality | Cyclical |
| Capital Intensity | Medium |
| Regulatory Intensity | Medium |
| Industry Maturity | Growth |
| Geographic Importance | Global |
Interactive Media & Services Filers in the SEC Record
37 companies with annual reports in the dataset are classified by the SEC in the Standard Industrial Classification code 7370. Their latest fiscal years end between 2025 and 2026, and together they reported $645.5 billion of revenue. Median revenue growth over the prior year was 8.7%. Median operating margin was -9.0% and median net margin -8.4%. Median total liabilities were 45% of total assets, and 12 of 37 reported a profit in their latest year.
| Company | Revenue | Growth | Operating margin | Net margin | Year |
|---|---|---|---|---|---|
| Alphabet Inc. | $402.8 billion | 15.1% | 32.0% | 32.8% | FY 2025 |
| Meta Platforms, Inc. | $201.0 billion | 22.2% | 41.4% | 30.1% | FY 2025 |
| Snap Inc | $5.9 billion | 10.6% | -9.0% | -7.8% | FY 2025 |
| Applovin Corp | $5.5 billion | 70.0% | 75.8% | 60.8% | FY 2025 |
| Zoom Communications, Inc. | $4.9 billion | 4.4% | 23.1% | 39.0% | FY 2026 |
| Pinterest, Inc. | $4.2 billion | 15.8% | 7.6% | 9.9% | FY 2025 |
| Niq Global Intelligence Plc | $4.2 billion | 5.7% | 2.0% | -8.4% | FY 2025 |
| Trade Desk, Inc. | $2.9 billion | 18.5% | 20.3% | 15.3% | FY 2025 |
The 8 largest of 37 by revenue. Source: each company's own annual report as filed with the SEC (XBRL data), figures in U.S. dollars. A company's SIC code reflects its main business as the SEC records it, so it can differ from how an index provider or analyst classifies the company, and a diversified group appears under only one code.
Where to Go Next
The Interactive Media & Services guide describes how the industry earns money, what to measure and what can go wrong. To see how it compares, read the neighbouring industries in the same sector, then apply the same checks to a specific company.
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Frequently Asked Questions
What are the main KPIs for the Interactive Media & Services industry?
Key performance indicators for the Interactive Media & Services industry include: Daily or monthly active users, Average revenue per user, Ad impressions and price, Operating margin, Capital spending on infrastructure. Which matter most depends on the company's model, so compare them across several companies rather than relying on one.
How cyclical is the Interactive Media & Services industry?
The Interactive Media & Services industry is cyclical, meaning its revenues and earnings tend to expand during economic expansions and contract during downturns. Investors should monitor leading economic indicators and interest rate trends when evaluating timing.
What are the biggest risks in the Interactive Media & Services industry?
The primary risks for Interactive Media & Services companies include: Regulatory and antitrust action, Ad cycle sensitivity, Platform and algorithm changes, Content moderation costs. Investors should assess each company's exposure to these factors and its track record of navigating them.