The Trade Desk, Inc. stock research
FY2024 Q1
The Trade Desk (TTD) Gross Margin — Quarter Ended Mar 31, 2024
Revenue and gross profit increased compared to the same quarter one year earlier, while cost of revenue also rose. The gross margin improved versus the prior year but decreased from the immediately preceding quarter, indicating mixed sequential performance.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue and gross profit increased compared to the same quarter one year earlier, while cost of revenue also rose. The gross margin improved versus the prior year but decreased from the immediately preceding quarter, indicating mixed sequential performance.
- The relationship between gross profit and cost of revenue shows that cost of revenue grew at a slower pace than revenue when compared to the year-ago quarter, supporting the year-over-year gross margin improvement. However, sequentially, cost of revenue declined less than revenue, leading to a weakened gross margin.
- Compared to the immediately preceding quarter, revenue and gross profit were lower while cost of revenue was slightly lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.9%
Gross profit
$387.6M
Revenue
$491.3M
Cost of revenue
$103.6M
Quarter-over-quarter change
-4.5 pts
Year-over-year change
+1.1 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2024 | $491.3M | $387.6M | $103.6M | 78.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-4.5 pts
Year-over-year change
Mar 31, 2023
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship between gross profit and cost of revenue shows that cost of revenue grew at a slower pace than revenue when compared to the year-ago quarter, supporting the year-over-year gross margin improvement. However, sequentially, cost of revenue declined less than revenue, leading to a weakened gross margin.
Compared to the immediately preceding quarter, revenue and gross profit were lower while cost of revenue was slightly lower, resulting in a weakened gross margin. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters, as its slower decline sequentially contributed to the margin contraction.