Trade Desk Inc (TTD)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	1,972,820	1,580,520	1,296,670	974,913	657,221
Revenue	US$ in thousands	2,444,830	1,946,120	1,577,800	1,196,470	836,033
Gross profit margin		80.69%	81.21%	82.18%	81.48%	78.61%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,972,820K ÷ $2,444,830K
= 80.69%

The gross profit margin of Trade Desk Inc. has demonstrated a generally high and stable profitability trend over the observed period from December 31, 2020, through December 31, 2024. Specifically, the gross profit margin increased from 78.61% in 2020 to a peak of 82.18% in 2022. This upward trend in margins indicates an improvement in the company's ability to generate profit from its core operations during this period.

Following the peak in 2022, there is a slight decline observed in the margins, decreasing to 81.21% in 2023 and further to 80.69% in 2024. Despite this decline, the margins remain relatively high and stable, remaining within a narrow range above 80%, signaling sustained efficiency in controlling direct costs relative to revenue.

Overall, the pattern suggests that Trade Desk Inc. has maintained a strong gross profit margin, reflecting effective management of cost of goods sold and robust revenue generation. The slight fluctuation in recent years may be attributable to operational or market factors, but the company's core profitability from gross margins remains healthy and consistent.