The Trade Desk, Inc. stock research
FY2023 Q4
The Trade Desk (TTD) Gross Margin — Quarter Ended Dec 31, 2023
Revenue increased from the prior quarter and from the same quarter last year, leading to higher gross profit. The gross margin improved versus the prior quarter but weakened slightly compared to the same quarter a year ago as cost of revenue grew more compared to revenue.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue increased from the prior quarter and from the same quarter last year, leading to higher gross profit. The gross margin improved versus the prior quarter but weakened slightly compared to the same quarter a year ago as cost of revenue grew more compared to revenue.
- Gross profit growth outpaced cost of revenue growth sequentially, driving the margin improvement from the prior quarter.
- Revenue and gross profit each increased from the prior quarter, and both were higher than a year ago. The gross margin rose from the preceding quarter but was modestly lower than the year-ago level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
83.4%
Gross profit
$505.1M
Revenue
$605.8M
Cost of revenue
$100.7M
Quarter-over-quarter change
+2.3 pts
Year-over-year change
-0.4 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% |
| Sep 30, 2023 | $493.3M | $399.9M | $93.4M | 81.1% |
| Dec 31, 2023 | $605.8M | $505.1M | $100.7M | 83.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
+2.3 pts
Year-over-year change
Dec 31, 2022
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit growth outpaced cost of revenue growth sequentially, driving the margin improvement from the prior quarter.
Revenue and gross profit each increased from the prior quarter, and both were higher than a year ago. The gross margin rose from the preceding quarter but was modestly lower than the year-ago level.
Monitor the change in cost of revenue relative to revenue, as its proportion increased year-over-year.