The Trade Desk, Inc. stock research
FY2024 Q2
The Trade Desk (TTD) Gross Margin — Quarter Ended Jun 30, 2024
Revenue and gross profit both increased compared to the immediately preceding quarter, while cost of revenue rose at a slower pace, resulting in an improved gross margin. Relative to the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue grew faster, leading to a slightly weakened gross margin.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue and gross profit both increased compared to the immediately preceding quarter, while cost of revenue rose at a slower pace, resulting in an improved gross margin. Relative to the same quarter one year earlier, revenue and gross profit were higher, but cost of revenue grew faster, leading to a slightly weakened gross margin.
- The strongest observable margin driver is the lower growth rate of cost of revenue relative to revenue growth from the prior quarter, which enabled gross margin to improve sequentially. No specific driver can be attributed from the filing context provided.
- Sequentially, gross margin improved from the earlier quarter. Year-over-year, gross margin weakened slightly from the same period last year.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.1%
Gross profit
$474.1M
Revenue
$584.5M
Cost of revenue
$110.5M
Quarter-over-quarter change
+2.2 pts
Year-over-year change
-0.2 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 |
|---|---|---|---|---|
| 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% |
| Jun 30, 2024 | $584.5M | $474.1M | $110.5M | 81.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+2.2 pts
Year-over-year change
Jun 30, 2023
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the lower growth rate of cost of revenue relative to revenue growth from the prior quarter, which enabled gross margin to improve sequentially. No specific driver can be attributed from the filing context provided.
Sequentially, gross margin improved from the earlier quarter. Year-over-year, gross margin weakened slightly from the same period last year.
Monitor the trend in cost of revenue growth relative to revenue growth, as its pace has diverged between sequential and annual comparisons.