The Trade Desk, Inc. stock research
FY2024 Q4
The Trade Desk (TTD) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit both rose from the prior quarter and from the same quarter a year ago, while cost of revenue also increased over both periods. Gross margin improved sequentially but weakened compared with the prior year quarter.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit both rose from the prior quarter and from the same quarter a year ago, while cost of revenue also increased over both periods. Gross margin improved sequentially but weakened compared with the prior year quarter.
- The gross margin strengthened from the immediate prior quarter, as revenue growth outpaced the increase in cost of revenue. However, compared with the same quarter one year earlier, gross margin declined, indicating that cost of revenue has grown faster than revenue over that longer span.
- Revenue and gross profit both increased compared with the prior quarter and the year-ago quarter, while gross margin improved from the prior quarter but weakened from the year-ago quarter. The cost of revenue was higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.7%
Gross profit
$605.7M
Revenue
$741.0M
Cost of revenue
$135.3M
Quarter-over-quarter change
+1.3 pts
Year-over-year change
-1.6 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $741.0M | $605.7M | $135.3M | 81.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
+1.3 pts
Year-over-year change
Dec 31, 2023
-1.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin strengthened from the immediate prior quarter, as revenue growth outpaced the increase in cost of revenue. However, compared with the same quarter one year earlier, gross margin declined, indicating that cost of revenue has grown faster than revenue over that longer span.
Revenue and gross profit both increased compared with the prior quarter and the year-ago quarter, while gross margin improved from the prior quarter but weakened from the year-ago quarter. The cost of revenue was higher in both comparisons.
Monitor whether the cost of revenue growth rate continues to exceed revenue growth, as this dynamic has compressed gross margin compared with the year-ago period.