Trade Desk Inc (TTD)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	393,076	178,940	53,385	137,762	242,317
Revenue	US$ in thousands	2,444,830	1,946,120	1,577,800	1,196,470	836,033
Net profit margin		16.08%	9.19%	3.38%	11.51%	28.98%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $393,076K ÷ $2,444,830K
= 16.08%

The net profit margin of Trade Desk Inc. demonstrates significant fluctuations over the observed period from December 31, 2020 to December 31, 2024. At the end of 2020, the company reported a robust net profit margin of 28.98%, indicating strong profitability relative to its revenues. However, this metric experienced a substantial decline in 2021, decreasing to 11.51%, which suggests a contraction in profitability or increased expenses impacting net income.

The downward trend continued into 2022, with the net profit margin falling markedly to 3.38%. This sharp reduction indicates a significant deterioration in profitability, potentially caused by increased operating costs, lower revenue efficiency, or other operational challenges encountered during that period. Notably, the margin improved in 2023, rising to 9.19%, reflecting some recovery or cost management improvements that positively impacted net earnings.

By the end of 2024, the net profit margin further increased to 16.08%, approaching halfway back toward the level observed at the end of 2020. This upward momentum suggests a continued trend of improved profitability, although it has not yet returned to the peak levels seen in 2020. Overall, the trajectory of Trade Desk Inc.'s net profit margin indicates a period of substantial volatility with phases of significant decline followed by partial recovery, reflecting potential operational adjustments and evolving market conditions.