The Trade Desk, Inc. stock research
FY2025 Q1
The Trade Desk (TTD) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased and cost of revenue increased, leading to a lower gross profit and a weakened gross margin compared to the immediate prior quarter. Versus the same quarter one year earlier, revenue and gross profit were higher, while cost of revenue also grew, resulting in a slightly improved gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased and cost of revenue increased, leading to a lower gross profit and a weakened gross margin compared to the immediate prior quarter. Versus the same quarter one year earlier, revenue and gross profit were higher, while cost of revenue also grew, resulting in a slightly improved gross margin.
- The most notable observable driver was the sequential growth in cost of revenue, which outpaced the change in revenue, pressing gross margin lower. The relative stability of gross margin on a year-over-year basis suggests that revenue and cost trends moved in a broadly aligned manner over the longer comparison.
- Compared to the preceding quarter, gross margin weakened as revenue dropped while cost of revenue increased. Against the same quarter one year earlier, gross margin was slightly higher, with revenue growth outpacing the increase in cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
76.8%
Gross profit
$473.2M
Revenue
$616.0M
Cost of revenue
$142.8M
Quarter-over-quarter change
-4.9 pts
Year-over-year change
-2.1 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, 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% |
| Mar 31, 2025 | $616.0M | $473.2M | $142.8M | 76.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
-4.9 pts
Year-over-year change
Mar 31, 2024
-2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable observable driver was the sequential growth in cost of revenue, which outpaced the change in revenue, pressing gross margin lower. The relative stability of gross margin on a year-over-year basis suggests that revenue and cost trends moved in a broadly aligned manner over the longer comparison.
Compared to the preceding quarter, gross margin weakened as revenue dropped while cost of revenue increased. Against the same quarter one year earlier, gross margin was slightly higher, with revenue growth outpacing the increase in cost of revenue.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess whether the sequential margin pressure persists.