The Trade Desk, Inc. (“The Trade Desk,” the “Company” or “we”)
(NASDAQ: TTD), a provider of a global technology platform for
buyers of advertising, today announced financial results for its
third quarter ended September 30, 2024.
“The Trade Desk delivered strong performance in the third
quarter, with revenue of $628 million, accelerating growth to 27%.
This performance underlines the value that advertisers are placing
on precision and transparency as they work with us to maximize the
impact of their campaigns,” said Jeff Green, Co-founder and CEO of
The Trade Desk. “As we enter our busiest time of year and look
ahead to 2025, we have never been in a better position to capture
greater share of the $1 trillion advertising TAM. 2024 has been a
banner year for CTV. Many of the largest media companies are now
working with us to help clients capture the full value of CTV
advertising via programmatic. We are similarly excited about the
momentum in retail media and the pace of adoption by advertisers
who are taking advantage of our retail data marketplace. And the
performance improvements that our clients are seeing with Kokai -
our largest platform upgrade to date - showcase the value of
audience-driven, AI-enabled innovation.”
Third Quarter 2024 Financial
Highlights:
The following table summarizes our unaudited consolidated
financial results for the three and nine months ended September 30,
2024 and 2023 ($ in millions, except per share amounts):
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
GAAP Results
Revenue
$
628
$
493
$
1,704
$
1,340
Increase in revenue year over year
27
%
25
%
27
%
23
%
Net income
$
94
$
39
$
211
$
82
Net income margin
15
%
8
%
12
%
6
%
GAAP diluted earnings per share
$
0.19
$
0.08
$
0.42
$
0.16
Non-GAAP Results
Adjusted EBITDA
$
257
$
200
$
661
$
488
Adjusted EBITDA margin
41
%
40
%
39
%
36
%
Non-GAAP net income
$
207
$
167
$
536
$
421
Non-GAAP diluted earnings per share
$
0.41
$
0.33
$
1.07
$
0.84
Third Quarter and Recent Business
Highlights:
- Strong Customer Retention: Customer retention remained
over 95% during the third quarter, as it has for the past ten
consecutive years.
- Continued Collaboration and Support for Unified ID 2.0:
The Trade Desk is building support for Unified ID 2.0 (UID2), an
industry-wide approach to identity that preserves the value of
relevant advertising, while putting user control and privacy at the
forefront. UID2 is an upgrade and alternative to third-party
cookies. Recent partnerships and pledges of integration and support
include:
- Spotify is extending its partnership with The Trade Desk,
piloting integrations with OpenPath and UID2 through Spotify Ad
Exchange.
- Roku announced its adoption of UID2, allowing advertisers to
implement more precise targeting and a secure means to facilitate
data collaboration with Roku Media.
- Reach, a UK news publisher of 130 media brands, is adopting
EUID as part of their commitment to protecting journalism with a
best-in-class advertising experience for readers.
- Global media company Motorsport Network announced adoption of
EUID to provide relevant advertising while prioritizing consumer
privacy and transparency for its 60 million authenticated
users.
- Cint announced integration of UID2 to provide robust,
omnichannel brand lift measurement.
- Industry Recognition (2024):
- Institutional Investor Awards - Most Honored Company, Best CEO,
Best Company Board, Best IR Program, Best IR Professional, Best IR
Team, Best Analyst Day
- U.S. News & World Report Best Company to Work For
- Business Insider Rising Stars of Adtech
- AdExchanger Top Women in Media & Ad Tech
- MM+M 40 under 40
- Retail TouchPoints 40 under 40
- Share Repurchases: The Company repurchased $54 million
of its Class A common stock in the third quarter of 2024. As of
September 30, 2024, the Company had $521 million available and
authorized for repurchases.
Financial Guidance:
Fourth Quarter 2024 outlook summary:
- Revenue at least $756 million
- Adjusted EBITDA of approximately $363 million
We have not provided an outlook for GAAP net income or
reconciliation of Adjusted EBITDA guidance to net income, the
closest corresponding U.S. GAAP measure, because net income outlook
is not available without unreasonable efforts on a forward-looking
basis due to the variability and complexity with respect to the
charges included in the calculation of this non-GAAP measure; in
particular, the measures and effects of our stock-based
compensation expense that are directly impacted by unpredictable
fluctuations in our share price. We expect the variability of the
above charges could have a significant and potentially
unpredictable impact on our future U.S. GAAP financial results.
Use of Non-GAAP Financial
Information
Included within this press release are the non-GAAP financial
measures of Adjusted EBITDA, Adjusted EBITDA margin, Non-GAAP net
income and Non-GAAP diluted earnings per share (“EPS”) that
supplement the Condensed Consolidated Statements of Operations of
The Trade Desk, Inc. (the Company) prepared under generally
accepted accounting principles (GAAP). Adjusted EBITDA is earnings
before depreciation and amortization; stock-based compensation;
interest income, net; and provision for income taxes. Adjusted
EBITDA margin is Adjusted EBITDA divided by revenue, and Adjusted
EBITDA margin’s closest corresponding U.S. GAAP measure is net
income margin, which is GAAP net income divided by revenue.
Non-GAAP net income excludes charges and the related income tax
effects for stock-based compensation. Tax rates on the
tax-deductible portions of the stock-based compensation expense
approximating 25% to 30% have been used in the computation of
non-GAAP net income and non-GAAP diluted EPS. Reconciliations of
GAAP to non-GAAP amounts for the periods presented herein are
provided in schedules accompanying this release and should be
considered together with the Condensed Consolidated Statements of
Operations. These non-GAAP measures are not meant as a substitute
for GAAP, but are included solely for informational and comparative
purposes. The Company's management believes that this information
can assist investors in evaluating the Company's operational
trends, financial performance, and cash-generating capacity.
Management believes these non-GAAP measures allow investors to
evaluate the Company’s financial performance using some of the same
measures as management. However, the non-GAAP financial measures
should not be regarded as a replacement for or superior to
corresponding, similarly captioned, GAAP measures and may be
different from non-GAAP financial measures used by other
companies.
Third Quarter 2024 Financial Results
Webcast and Conference Call Details
- When: November 7, 2024 at 2:00 P.M. Pacific Time (5:00
P.M. Eastern Time).
- Webcast: A live webcast of the call can be accessed from
the Investor Relations section of The Trade Desk’s website at
http://investors.thetradedesk.com/. Following the call, a replay
will be available on the Company’s website.
- Dial-in: To access the call via telephone in North
America, please dial 888-506-0062. For callers outside the United
States, please dial 1-973-528-0011. Participants should reference
the conference call ID code “349188” after dialing in.
- Audio replay: An audio replay of the call will be
available beginning about two hours after the call. To listen to
the replay in the United States, please dial 877-481-4010 (replay
code: 51455). Outside the United States, please dial 1-919-882-2331
(replay code: 51455). The audio replay will be available via
telephone until November 14, 2024.
The Trade Desk, Inc. uses its Investor Relations website
(http://investors.thetradedesk.com/), its Twitter feed
(@TheTradeDesk), LinkedIn page
(https://www.linkedin.com/company/the-trade-desk/), Facebook page
(https://www.facebook.com/TheTradeDesk/) and Jeff Green’s LinkedIn
profile (https://www.linkedin.com/in/jefftgreen/) as a means of
disclosing information about the Company and for complying with its
disclosure obligations under Regulation FD. The information that is
posted through these channels may be deemed material. Accordingly,
investors should monitor these channels in addition to The Trade
Desk’s press releases, SEC filings, public conference calls and
webcasts.
About The Trade Desk
The Trade Desk™ is a technology company that empowers buyers of
advertising. Through its self-service, cloud-based platform, ad
buyers can create, manage, and optimize digital advertising
campaigns across ad formats and devices. Integrations with major
data, inventory, and publisher partners ensure maximum reach and
decisioning capabilities, and enterprise APIs enable custom
development on top of the platform. Headquartered in Ventura, CA,
The Trade Desk has offices across North America, Europe and Asia
Pacific. To learn more, visit thetradedesk.com or follow us on
Facebook, Twitter, LinkedIn and YouTube.
Forward-Looking Statements
This press release contains “forward-looking statements” within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements relate to expectations concerning matters
that (a) are not historical facts, (b) predict or forecast future
events or results, or (c) embody assumptions that may prove to have
been inaccurate, including statements relating to industry and
market trends, the Company’s financial targets, such as revenue and
Adjusted EBITDA. When words such as “believe,” “expect,”
“anticipate,” “will,” “outlook” or similar expressions are used,
the Company is making forward-looking statements. Although the
Company believes that the expectations reflected in such
forward-looking statements are reasonable, it cannot give readers
any assurance that such expectations will prove correct. These
forward-looking statements involve risks, uncertainties and
assumptions, including those related to the Company’s relatively
limited operating history, which makes it difficult to evaluate the
Company’s business and prospects, the market for programmatic
advertising developing slower or differently than the Company’s
expectations, the demands and expectations of clients and the
ability to attract and retain clients. The actual results may
differ materially from those anticipated in the forward-looking
statements as a result of numerous factors, many of which are
beyond the control of the Company. These are disclosed in the
Company’s reports filed from time to time with the Securities and
Exchange Commission, including its most recent Form 10-K and any
subsequent filings on Forms 10-Q or 8-K, available at www.sec.gov.
Readers are urged not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The Company does not intend to update any
forward-looking statement contained in this press release to
reflect events or circumstances arising after the date hereof.
THE TRADE DESK, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS
(Amounts in thousands, except
per share amounts)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Revenue
$
628,016
$
493,266
$
1,703,819
$
1,340,323
Operating expenses (1):
Platform operations
122,656
93,382
336,745
264,903
Sales and marketing
140,296
112,466
395,888
321,177
Technology and development
117,705
117,772
335,426
309,790
General and administrative
138,878
131,969
403,902
388,411
Total operating expenses
519,535
455,589
1,471,961
1,284,281
Income from operations
108,481
37,677
231,858
56,042
Total other income, net
(18,697
)
(19,323
)
(53,845
)
(51,277
)
Income before income taxes
127,178
57,000
285,703
107,319
Provision for income taxes
33,020
17,648
74,856
25,702
Net income
$
94,158
$
39,352
$
210,847
$
81,617
Earnings per share:
Basic
$
0.19
$
0.08
$
0.43
$
0.17
Diluted
$
0.19
$
0.08
$
0.42
$
0.16
Weighted-average shares outstanding:
Basic
491,614
489,447
489,845
489,195
Diluted
502,563
501,880
500,273
500,348
___________________________
(1) Includes stock-based compensation
expense as follows:
THE TRADE DESK, INC.
STOCK-BASED COMPENSATION
EXPENSE
(Amounts in thousands)
(Unaudited)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Platform operations
$
7,617
$
5,729
$
20,444
$
14,642
Sales and marketing
25,294
21,116
70,654
54,039
Technology and development
36,958
43,727
97,441
91,283
General and administrative (1)
58,641
69,061
176,931
210,222
Total
$
128,510
$
139,633
$
365,470
$
370,186
___________________________
(1) Includes stock-based compensation
expense related to a long-term CEO performance grant of $30 million
and $48 million for the three months ended September 30, 2024 and
2023, respectively, as well as $102 million and $156 million for
the nine months ended September 30, 2024 and 2023,
respectively.
THE TRADE DESK, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Amounts in thousands)
(Unaudited)
As of September 30,
2024
As of December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents
$
1,221,475
$
895,129
Short-term investments, net
510,290
485,159
Accounts receivable, net
2,989,387
2,870,313
Prepaid expenses and other current
assets
117,221
63,353
Total current assets
4,838,373
4,313,954
Property and equipment, net
197,973
161,422
Operating lease assets
242,431
197,732
Deferred income taxes
154,849
154,849
Other assets, non-current
71,699
60,730
Total assets
$
5,505,325
$
4,888,687
LIABILITIES AND STOCKHOLDERS’
EQUITY
Current liabilities:
Accounts payable
$
2,409,773
$
2,317,318
Accrued expenses and other current
liabilities
142,459
137,996
Operating lease liabilities
62,858
55,524
Total current liabilities
2,615,090
2,510,838
Operating lease liabilities,
non-current
230,355
180,369
Other liabilities, non-current
34,130
33,261
Total liabilities
2,879,575
2,724,468
Stockholders' equity:
Preferred stock
—
—
Common stock
—
—
Additional paid-in capital
2,397,100
1,967,265
Retained earnings
228,650
196,954
Total stockholders' equity
2,625,750
2,164,219
Total liabilities and stockholders'
equity
$
5,505,325
$
4,888,687
THE TRADE DESK, INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Nine Months Ended September
30,
2024
2023
OPERATING ACTIVITIES:
Net income
$
210,847
$
81,617
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization
63,378
59,889
Stock-based compensation
365,470
370,186
Noncash lease expense
41,522
36,672
Provision for expected credit losses on
accounts receivable
837
1,811
Other
(11,901
)
(8,312
)
Changes in operating assets and
liabilities:
Accounts receivable
(125,711
)
(130,650
)
Prepaid expenses and other current and
non-current assets
(68,490
)
(11,370
)
Accounts payable
87,175
125,661
Accrued expenses and other current and
non-current liabilities
8,846
18,439
Operating lease liabilities
(31,918
)
(36,741
)
Net cash provided by operating
activities
540,055
507,202
INVESTING ACTIVITIES:
Purchases of investments
(486,596
)
(448,251
)
Maturities of investments
475,022
425,400
Purchases of property and equipment
(78,048
)
(21,594
)
Capitalized software development costs
(6,708
)
(6,097
)
Net cash used in investing activities
(96,330
)
(50,542
)
FINANCING ACTIVITIES:
Repurchases of Class A common stock
(177,428
)
(426,684
)
Proceeds from exercise of stock
options
127,690
45,363
Proceeds from employee stock purchase
plan
30,122
21,316
Taxes paid related to net settlement of
restricted stock awards
(97,763
)
(55,397
)
Net cash used in financing activities
(117,379
)
(415,402
)
Increase in cash and cash equivalents
326,346
41,258
Cash and cash equivalents—Beginning of
period
895,129
1,030,506
Cash and cash equivalents—End of
period
$
1,221,475
$
1,071,764
Non-GAAP Financial Metrics
(Amounts in thousands, except per share
amounts)
(Unaudited)
The following tables show the Company’s
non-GAAP financial metrics reconciled to the comparable GAAP
financial metrics included in this release.
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Net income
$
94,158
$
39,352
$
210,847
$
81,617
Add back (deduct):
Depreciation and amortization expense
20,754
20,530
63,378
59,889
Stock-based compensation expense
128,510
139,633
365,470
370,186
Interest income, net
(19,408
)
(17,626
)
(53,886
)
(49,556
)
Provision for income taxes
33,020
17,648
74,856
25,702
Adjusted EBITDA
$
257,034
$
199,537
$
660,665
$
487,838
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
GAAP net income
$
94,158
$
39,352
$
210,847
$
81,617
Add back (deduct):
Stock-based compensation expense
128,510
139,633
365,470
370,186
Adjustment for income taxes
(15,441
)
(11,742
)
(40,739
)
(30,566
)
Non-GAAP net income
$
207,227
$
167,243
$
535,578
$
421,237
GAAP diluted earnings per share
$
0.19
$
0.08
$
0.42
$
0.16
GAAP weighted-average shares
outstanding—diluted
502,563
501,880
500,273
500,348
Non-GAAP diluted earnings per share
$
0.41
$
0.33
$
1.07
$
0.84
Non-GAAP weighted-average shares used in
computing Non-GAAP earnings per share, diluted
502,563
501,880
500,273
500,348
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241107931247/en/
Investors Jake Graves Senior Manager, Investor Relations
The Trade Desk ir@thetradedesk.com
Media Melinda Zurich VP, Communications The Trade Desk
melinda.zurich@thetradedesk.com
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