The Trade Desk, Inc. stock research
FY2023 Q1
The Trade Desk (TTD) Gross Margin — Quarter Ended Mar 31, 2023
Revenue and gross profit declined from the prior quarter, while cost of revenue rose, leading to a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased, but cost of revenue grew more rapidly, resulting in a slightly weaker gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue and gross profit declined from the prior quarter, while cost of revenue rose, leading to a lower gross margin. Compared to the same quarter last year, revenue and gross profit increased, but cost of revenue grew more rapidly, resulting in a slightly weaker gross margin.
- The gross margin weakened both sequentially and year-over-year, as cost of revenue increased at a faster rate than revenue relative to the prior periods.
- Gross margin decreased from the previous quarter and from the year-ago quarter, reflecting a higher proportion of cost of revenue relative to revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
77.8%
Gross profit
$297.9M
Revenue
$382.8M
Cost of revenue
$84.9M
Quarter-over-quarter change
n/a
Year-over-year change
-1.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $382.8M | $297.9M | $84.9M | 77.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin weakened both sequentially and year-over-year, as cost of revenue increased at a faster rate than revenue relative to the prior periods.
Gross margin decreased from the previous quarter and from the year-ago quarter, reflecting a higher proportion of cost of revenue relative to revenue.
Monitor the trend in cost of revenue as a percentage of revenue, as it has increased relative to both the prior quarter and the year-ago quarter.