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The Trade Desk (LTS:0LF5) Gross Margin % : 80.47% (As of Sep. 2024)


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What is The Trade Desk Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. The Trade Desk's Gross Profit for the three months ended in Sep. 2024 was $505 Mil. The Trade Desk's Revenue for the three months ended in Sep. 2024 was $628 Mil. Therefore, The Trade Desk's Gross Margin % for the quarter that ended in Sep. 2024 was 80.47%.


The historical rank and industry rank for The Trade Desk's Gross Margin % or its related term are showing as below:

LTS:0LF5' s Gross Margin % Range Over the Past 10 Years
Min: 71.81   Med: 79.22   Max: 82.18
Current: 81.06


During the past 10 years, the highest Gross Margin % of The Trade Desk was 82.18%. The lowest was 71.81%. And the median was 79.22%.

LTS:0LF5's Gross Margin % is ranked better than
89.27% of 2618 companies
in the Software industry
Industry Median: 41.435 vs LTS:0LF5: 81.06

The Trade Desk had a gross margin of 80.47% for the quarter that ended in Sep. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for The Trade Desk was 1.70% per year.


The Trade Desk Gross Margin % Historical Data

The historical data trend for The Trade Desk's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Trade Desk Gross Margin % Chart

The Trade Desk Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 76.37 78.61 81.48 82.18 81.21

The Trade Desk Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 81.07 83.38 78.90 81.10 80.47

Competitive Comparison of The Trade Desk's Gross Margin %

For the Software - Application subindustry, The Trade Desk's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Trade Desk's Gross Margin % Distribution in the Software Industry

For the Software industry and Technology sector, The Trade Desk's Gross Margin % distribution charts can be found below:

* The bar in red indicates where The Trade Desk's Gross Margin % falls into.



The Trade Desk Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

The Trade Desk's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=1580.5 / 1946.12
=(Revenue - Cost of Goods Sold) / Revenue
=(1946.12 - 365.598) / 1946.12
=81.21 %

The Trade Desk's Gross Margin for the quarter that ended in Sep. 2024 is calculated as


Gross Margin % (Q: Sep. 2024 )=Gross Profit (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=505.4 / 628.016
=(Revenue - Cost of Goods Sold) / Revenue
=(628.016 - 122.656) / 628.016
=80.47 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


The Trade Desk  (LTS:0LF5) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

The Trade Desk had a gross margin of 80.47% for the quarter that ended in Sep. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


The Trade Desk Gross Margin % Related Terms

Thank you for viewing the detailed overview of The Trade Desk's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Trade Desk Business Description

Address
42 North Chestnut Street, Ventura, CA, USA, 93001
The Trade Desk provides a self-service platform that helps advertisers and ad agencies programmatically find and purchase digital ad inventory (display, video, audio, and social) on different devices like computers, smartphones, and connected TVs. It utilizes data to optimize the performance of ad impressions purchased. The firm's platform is referred to as a demand-side platform in the digital ad industry. The firm generates its revenue from fees based on a percentage of what its clients spend on advertising.

The Trade Desk Headlines

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