The Trade Desk, Inc. stock research
FY2024 Q3
The Trade Desk (TTD) Gross Margin — Quarter Ended Sep 30, 2024
Revenue, gross profit, and cost of revenue all increased compared with both the prior quarter and the same quarter one year ago. Gross margin slightly weakened versus both periods, indicating that cost of revenue grew at a marginally faster rate than revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue, gross profit, and cost of revenue all increased compared with both the prior quarter and the same quarter one year ago. Gross margin slightly weakened versus both periods, indicating that cost of revenue grew at a marginally faster rate than revenue.
- Revenue growth was the primary factor supporting gross profit improvement, while the relative increase in cost of revenue was modestly greater, leading to a small decline in the gross margin rate.
- Compared with the prior quarter, revenue and gross profit were higher, while gross margin was slightly lower. Versus the same quarter one year earlier, revenue and gross profit were significantly higher, but gross margin was again slightly lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.5%
Gross profit
$505.4M
Revenue
$628.0M
Cost of revenue
$122.7M
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $628.0M | $505.4M | $122.7M | 80.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-0.6 pts
Year-over-year change
Sep 30, 2023
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue growth was the primary factor supporting gross profit improvement, while the relative increase in cost of revenue was modestly greater, leading to a small decline in the gross margin rate.
Compared with the prior quarter, revenue and gross profit were higher, while gross margin was slightly lower. Versus the same quarter one year earlier, revenue and gross profit were significantly higher, but gross margin was again slightly lower.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate has outpaced revenue for two consecutive comparable periods, pressuring gross margin.