Trade Desk Inc (TTD)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 427,167 | 200,480 | 113,654 | 124,817 | 144,208 |
| Revenue | US$ in thousands | 2,444,830 | 1,946,120 | 1,577,800 | 1,196,470 | 836,033 |
| Operating profit margin | 17.47% | 10.30% | 7.20% | 10.43% | 17.25% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $427,167K ÷ $2,444,830K
= 17.47%
The operating profit margin of Trade Desk Inc. has exhibited significant fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. At the end of 2020, the operating profit margin stood at 17.25%, indicating a relatively strong profitability from core operations. However, this margin experienced a substantial decline in 2021, decreasing to 10.43%, and continued to contract further in 2022 to 7.20%, suggesting increased operating expenses or shifts in revenue relative to costs during this period.
In 2023, the operating profit margin showed signs of improvement, rising modestly to 10.30%, which may reflect an operational turnaround or cost management efforts. The most notable development occurred in 2024, where the operating profit margin rebounded sharply to 17.47%. This significant increase indicates a substantial enhancement in operational efficiency or revenue growth relative to operating expenses, returning the margin to levels comparable to or surpassing those observed at the end of 2020.
Overall, the trend over these four years demonstrates considerable volatility, with periods of contraction followed by a robust recovery. The fluctuations highlight the company's evolving operational performance, influenced by factors such as cost management, revenue evolution, and market dynamics. The recovery to near pre-2021 levels in 2024 suggests a positive trajectory in operational profitability for Trade Desk Inc.
Peer comparison
Dec 31, 2024