Trade Desk Inc (TTD)

Gross profit margin

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Gross profit (ttm)	US$ in thousands	2,127,346	2,058,378	1,972,819	1,872,176	1,766,700	1,675,176	1,585,489	1,491,505	1,416,270	1,343,175	1,296,672	1,214,307	1,137,349	1,057,035	974,913	914,420	838,016	706,080	657,221	557,638
Revenue (ttm)	US$ in thousands	2,679,088	2,569,599	2,444,831	2,309,616	2,174,866	2,054,570	1,946,120	1,831,060	1,732,567	1,645,275	1,577,795	1,482,656	1,388,974	1,291,979	1,196,467	1,120,774	1,035,796	895,184	836,033	732,072
Gross profit margin		79.41%	80.11%	80.69%	81.06%	81.23%	81.53%	81.47%	81.46%	81.74%	81.64%	82.18%	81.90%	81.88%	81.82%	81.48%	81.59%	80.91%	78.88%	78.61%	76.17%

June 30, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,127,346K ÷ $2,679,088K
= 79.41%

The gross profit margin of Trade Desk Inc. demonstrates a generally stable trend with gradual variations over the analyzed period. Starting from 76.17% as of September 30, 2020, the gross profit margin exhibits a consistent upward trajectory through the subsequent quarters, reaching a peak near 82.18% by December 31, 2022. This upward movement signifies an improvement in the company's ability to generate profit from its core operations relative to revenue, reflecting effective cost management and perhaps favorable revenue mix shifts.

From early 2023 onwards, the gross profit margin exhibits slight fluctuations, indicating a period of stabilization around the 81.5% range. For instance, it is recorded at 81.64% on March 31, 2023, and marginally decreases to 81.23% by June 30, 2024. The trend continues with minor oscillations, eventually declining to approximately 80.11% on March 31, 2025, and further to 79.41% by June 30, 2025. This gradual decline may reflect increased costs, competitive pressures, or shifts in revenue composition.

Overall, the company's gross profit margin has historically been high, largely maintaining levels above 76%, with periods of enhancement reaching over 82%. In recent periods, the slight downward trend suggests a potential normalization or impact of increasing operational costs, while the margin remains relatively stable in the high 70s to low 80s range over the long term.