The Trade Desk, Inc. stock research
FY2023 Q2
The Trade Desk (TTD) Gross Margin — Quarter Ended Jun 30, 2023
In the current quarter, revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but cost of revenue grew at a different pace, resulting in a gross margin that improved sequentially but was slightly lower than the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
In the current quarter, revenue increased compared to both the prior quarter and the same quarter last year. Gross profit also rose, but cost of revenue grew at a different pace, resulting in a gross margin that improved sequentially but was slightly lower than the year-ago period.
- The most notable margin driver was the sequential improvement in gross margin, as revenue growth significantly outpaced the increase in cost of revenue.
- Compared to the immediately preceding quarter, gross margin improved. Relative to the same quarter one year earlier, gross margin was slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.3%
Gross profit
$377.6M
Revenue
$464.3M
Cost of revenue
$86.7M
Quarter-over-quarter change
+3.5 pts
Year-over-year change
-0.8 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% |
| Jun 30, 2023 | $464.3M | $377.6M | $86.7M | 81.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
+3.5 pts
Year-over-year change
Jun 30, 2022
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable margin driver was the sequential improvement in gross margin, as revenue growth significantly outpaced the increase in cost of revenue.
Compared to the immediately preceding quarter, gross margin improved. Relative to the same quarter one year earlier, gross margin was slightly lower.
Monitor the relationship between revenue growth and cost of revenue growth, as cost increases have accelerated on a year-over-year basis.