Trade Desk Inc (TTD)

Pretax 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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 557,747 537,038 507,302 446,379 376,201 323,636 267,995 219,439 192,941 135,096 127,370 -11,332 37,142 96,610 122,036 255,579 219,162 141,646 143,903 90,637
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
Pretax margin 20.82% 20.90% 20.75% 19.33% 17.30% 15.75% 13.77% 11.98% 11.14% 8.21% 8.07% -0.76% 2.67% 7.48% 10.20% 22.80% 21.16% 15.82% 17.21% 12.38%

June 30, 2025 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $557,747K ÷ $2,679,088K
= 20.82%

The pretax margin of Trade Desk Inc has demonstrated notable variability over the observed period, reflecting fluctuations in profitability before tax expenses. Starting at 12.38% on September 30, 2020, the margin experienced a significant upward trend, reaching a peak of 22.80% by September 30, 2021. This indicates a period of enhanced profitability relative to pre-tax income during this time frame.

Subsequently, the pretax margin declined sharply, falling to 10.20% at the end of 2021, and continued to decrease into 2022, reaching a low of -0.76% on September 30, 2022. The negative margin during this quarter suggests that the company reported a pre-tax loss, possibly attributable to increased expenses, operational challenges, or strategic adjustments.

From the fourth quarter of 2022 onwards, there has been a recovery trend. The margin increased to 8.07% by December 31, 2022, and persisted in an upward trajectory through 2023. By September 30, 2023, the pretax margin approached 12%, reaching 13.77% by the end of 2023, and continued climbing into 2024. The first half of 2024 saw the margin rise further, reaching 15.75% in March and 17.30% in June. The Fiscal third quarter of 2024 recorded a pretax margin of 19.33%, with projections indicating further improvement to 20.75% by the end of 2024 and into 2025, with margins stabilizing around 20.8% in the second quarter of 2025.

Overall, the pattern indicates an initial period of rising profitability, a subsequent downturn characterized by a temporary margin loss, followed by a sustained recovery. The trajectory suggests ongoing operational improvements or revenue growth contributing to enhanced pretax margins in recent periods.