Trade Desk Inc (TTD)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	507,302	267,995	127,370	122,036	143,903
Revenue	US$ in thousands	2,444,830	1,946,120	1,577,800	1,196,470	836,033
Pretax margin		20.75%	13.77%	8.07%	10.20%	17.21%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $507,302K ÷ $2,444,830K
= 20.75%

The pretax margin of Trade Desk Inc has exhibited notable fluctuations over the observed period from December 31, 2020, through December 31, 2024. At the end of 2020, the pretax margin stood at 17.21%, indicating a relatively healthy level of profitability before taxes. In the subsequent year, 2021, the margin declined significantly to 10.20%, reflecting a compression in profitability or increased operating costs relative to revenue. This reduction persisted into 2022, with the pretax margin decreasing further to 8.07%, suggesting continued pressure on pre-tax earnings or possibly higher expenses.

However, by the end of 2023, there was a recovery in the pretax margin, which increased to 13.77%. This upward movement may indicate improved operational efficiencies, revenue growth, or a reduction in costs. The most recent data for 2024 shows a substantial improvement, with the pretax margin reaching 20.75%. This level surpasses all previous years in the period and suggests a significant enhancement in profitability before taxes, potentially due to favorable revenue trends, cost management, or other operational improvements. Overall, the pretax margin demonstrates a pattern of decline followed by a recovery and notable expansion in the latest year.