TTD The Trade Desk Inc

The Trade Desk also announced an additional share repurchase authorization, bringing the total amount of authorized future repurchases to $1 billion of its Class A common stock.

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 fourth quarter and fiscal year ended December 31, 2024.

“The Trade Desk once again outpaced nearly every segment of digital advertising in 2024, delivering $2.4 billion of revenue – marking accelerated growth of 26% year over year – and a record $12 billion of spend on our platform. At the same time, we achieved significant profitability and cash flow. While we are proud of these accomplishments, we are disappointed that we fell short of our own expectations in the fourth quarter,” said Jeff Green, founder and CEO of The Trade Desk. “In December, we undertook a reorganization to accelerate opportunities across CTV, retail media, identity, supply chain optimization, and audio while forging ahead with innovations like Kokai and the Ventura Operating System. As more of the world’s leading advertisers shift to premium scalable channels in contrast to the limitations of user-generated content, the opportunity ahead is immense. In 2025 and beyond, we are uniquely positioned to help our clients take full advantage of data-driven advertising on the premium internet, helping them drive growth and brand loyalty for their businesses.”

Fourth Quarter and Full Year 2024 Financial Highlights:

The following table summarizes the Company’s unaudited consolidated financial results for the three and twelve months ended December 31, 2024 and 2023 ($ in millions, except per share amounts):

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

GAAP Results

 

 

 

 

 

 

 

Revenue

$

741

 

 

$

606

 

 

$

2,445

 

 

$

1,946

 

Increase in revenue year over year

 

22

%

 

 

23

%

 

 

26

%

 

 

23

%

Net income

$

182

 

 

$

97

 

 

$

393

 

 

$

179

 

Net income margin

 

25

%

 

 

16

%

 

 

16

%

 

 

9

%

GAAP diluted earnings per share

$

0.36

 

 

$

0.19

 

 

$

0.78

 

 

$

0.36

 

 

 

 

 

 

 

 

 

Non-GAAP Results

 

 

 

 

 

 

 

Adjusted EBITDA

$

350

 

 

$

284

 

 

$

1,011

 

 

$

772

 

Adjusted EBITDA margin

 

47

%

 

 

47

%

 

 

41

%

 

 

40

%

Non-GAAP net income

$

297

 

 

$

207

 

 

$

832

 

 

$

628

 

Non-GAAP diluted earnings per share

$

0.59

 

 

$

0.41

 

 

$

1.66

 

 

$

1.26

 

Fourth Quarter and 2024 Recent Business Highlights

• Continued Share Gains: 2024 gross spend of $12 billion.
• Strong Customer Retention: Customer retention remained over 95% during the year, as it has for the past eleven 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:
  • iHeartMedia announced its adoption of UID2 to empower its advertising partners with tools for effective targeting, precise measurement, and accurate attribution.
  • Leading supply-side platforms, including FreeWheel, Index Exchange, Magnite, and PubMatic have integrated European Unified ID (EUID) to enhance addressability across the open internet.
• “Ventura”, a Revolutionary Streaming TV Operating System (OS): Ventura represents a major advance in streaming TV operating systems as it solves key issues with prevailing market systems today, including frustrating user experiences, inefficient advertising supply chains and content conflicts-of-interest. The Trade Desk plans to partner with TV original equipment manufacturers (OEMs) and other distribution partners to deploy the Ventura OS.
• Agreement to Acquire Sincera: Sincera is a leading digital advertising data company that provides objective, actionable insights to the advertising ecosystem. Integration of Sincera’s tools with The Trade Desk platform will help advertisers gain a clearer perspective on what they are buying so they may better value those impressions. With this acquisition, The Trade Desk’s platform will also show publishers which data signals are most highly valued by advertisers. As previously announced, the acquisition is subject to customary closing conditions and is expected to close in the first quarter of 2025.
• 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

Financial Guidance:

First Quarter 2025 outlook summary:

• Revenue at least $575 million
• Adjusted EBITDA of approximately $145 million

The Company has 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. The Company expects 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 Consolidated Statements of Operations of the “Company” prepared under generally accepted accounting principles (“GAAP”). Adjusted EBITDA is net income before depreciation and amortization expense; stock-based compensation expense; 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 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.

Fourth Quarter and Fiscal Year 2024 Financial Results Webcast and Conference Call Details

• When: February 12, 2025 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 “277752” 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: 51930). Outside the United States, please dial 1-919-882-2331 (replay code: 51930). The audio replay will be available via telephone until February 19, 2025.

The Trade Desk, Inc. uses its Investor Relations website (http://investors.thetradedesk.com/), its X 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.

Share Repurchase Program

The Company used approximately $57 million of cash to repurchase its Class A common stock in the fourth quarter of 2024. The Company used approximately $235 million of cash to repurchase its Class A common stock in the year ended December 31, 2024, at an average repurchase price of $93.97. As of December 31, 2024, the Company had approximately $464 million available and authorized for repurchases. In January 2025, the Company repurchased approximately $28 million of its Class A common stock.

The Company also announced that its board of directors approved an additional $564 million under its share repurchase program pursuant to which the Company may purchase its outstanding Class A Common Stock, bringing the total amount for future repurchases to $1 billion. This program does not obligate the Company to acquire any particular amount of Class A Common Stock, and may be modified, suspended or terminated at any time at the discretion of the Company’s board of directors.

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, X, 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 growth and financial targets, such as revenue and Adjusted EBITDA and the amount, timing and sources of funding for the Company’s share repurchase program. 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.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except per share amounts)

(Unaudited)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

$

741,012

 

 

$

605,797

 

 

$

2,444,831

 

 

$

1,946,120

 

Operating expenses (1):

 

 

 

 

 

 

 

Platform operations

 

135,267

 

 

 

100,695

 

 

 

472,012

 

 

 

365,598

 

Sales and marketing

 

150,629

 

 

 

126,793

 

 

 

546,517

 

 

 

447,970

 

Technology and development

 

127,893

 

 

 

102,004

 

 

 

463,319

 

 

 

411,794

 

General and administrative

 

131,914

 

 

 

131,867

 

 

 

535,816

 

 

 

520,278

 

Total operating expenses

 

545,703

 

 

 

461,359

 

 

 

2,017,664

 

 

 

1,745,640

 

Income from operations

 

195,309

 

 

 

144,438

 

 

 

427,167

 

 

 

200,480

 

Total other income, net

 

(26,290

)

 

 

(16,238

)

 

 

(80,135

)

 

 

(67,515

)

Income before income taxes

 

221,599

 

 

 

160,676

 

 

 

507,302

 

 

 

267,995

 

Provision for income taxes

 

39,370

 

 

 

63,353

 

 

 

114,226

 

 

 

89,055

 

Net income

$

182,229

 

 

$

97,323

 

 

$

393,076

 

 

$

178,940

 

Earnings per share:

 

 

 

 

 

 

 

Basic

$

0.37

 

 

$

0.20

 

 

$

0.80

 

 

$

0.37

 

Diluted

$

0.36

 

 

$

0.19

 

 

$

0.78

 

 

$

0.36

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

 

493,958

 

 

 

489,454

 

 

 

490,879

 

 

 

489,261

 

Diluted

 

506,843

 

 

 

499,682

 

 

 

501,924

 

 

 

500,182

 

 

___________________________ (1) Includes stock-based compensation expense as follows:

THE TRADE DESK, INC.

STOCK-BASED COMPENSATION EXPENSE

(Amounts in thousands)

(Unaudited)

 

 

Three Months Ended December 31,

 

Year Ended December 31,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

Platform operations

$

8,866

 

$

6,406

 

$

29,310

 

$

21,048

Sales and marketing

 

28,481

 

 

21,885

 

 

99,135

 

 

75,924

Technology and development

 

40,952

 

 

29,540

 

 

138,393

 

 

120,823

General and administrative (1)

 

50,930

 

 

63,604

 

 

227,861

 

 

273,826

Total

$

129,229

 

$

121,435

 

$

494,699

 

$

491,621

   

___________________________ (1) Includes stock-based compensation expense related to a long-term CEO performance grant of $27 million and $42 million for the three months ended December 31, 2024 and 2023, respectively, as well as $128 million and $198 million for the twelve months ended December 31, 2024 and 2023, respectively.

THE TRADE DESK, INC.

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands)

(Unaudited)

 

 

As of December 31, 2024

 

As of December 31, 2023

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

1,369,463

 

$

895,129

Short-term investments, net

 

552,026

 

 

485,159

Accounts receivable, net

 

3,330,343

 

 

2,870,313

Prepaid expenses and other current assets

 

84,626

 

 

63,353

Total current assets

 

5,336,458

 

 

4,313,954

Property and equipment, net

 

209,332

 

 

161,422

Operating lease assets

 

263,761

 

 

197,732

Deferred income taxes

 

230,214

 

 

154,849

Other assets, non-current

 

72,186

 

 

60,730

Total assets

$

6,111,951

 

$

4,888,687

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

2,631,213

 

$

2,317,318

Accrued expenses and other current liabilities

 

177,760

 

 

137,996

Operating lease liabilities

 

64,492

 

 

55,524

Total current liabilities

 

2,873,465

 

 

2,510,838

Operating lease liabilities, non-current

 

247,723

 

 

180,369

Other liabilities, non-current

 

41,618

 

 

33,261

Total liabilities

 

3,162,806

 

 

2,724,468

 

 

 

 

Stockholders' equity:

 

 

 

Preferred stock

 

—

 

 

—

Common stock

 

—

 

 

—

Additional paid-in capital

 

2,594,896

 

 

1,967,265

Retained earnings

 

354,249

 

 

196,954

Total stockholders' equity

 

2,949,145

 

 

2,164,219

Total liabilities and stockholders' equity

$

6,111,951

 

$

4,888,687

THE TRADE DESK, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

 

 

Year Ended December 31,

 

 

2024

 

 

 

2023

 

OPERATING ACTIVITIES:

 

 

 

Net income

$

393,076

 

 

$

178,940

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

87,490

 

 

 

80,418

 

Stock-based compensation

 

494,699

 

 

 

491,621

 

Deferred income taxes

 

(76,903

)

 

 

(61,597

)

Noncash lease expense

 

57,403

 

 

 

48,955

 

Provision for expected credit losses on accounts receivable

 

853

 

 

 

2,960

 

Other

 

(7,881

)

 

 

(20,379

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(474,227

)

 

 

(554,012

)

Prepaid expenses and other current and non-current assets

 

(38,783

)

 

 

(26,815

)

Accounts payable

 

298,919

 

 

 

475,463

 

Accrued expenses and other current and non-current liabilities

 

46,564

 

 

 

35,681

 

Operating lease liabilities

 

(41,754

)

 

 

(52,913

)

Net cash provided by operating activities

 

739,456

 

 

 

598,322

 

INVESTING ACTIVITIES:

 

 

 

Purchases of investments

 

(679,539

)

 

 

(608,379

)

Maturities of investments

 

629,088

 

 

 

555,806

 

Purchases of property and equipment

 

(98,238

)

 

 

(46,790

)

Capitalized software development costs

 

(8,824

)

 

 

(8,230

)

Net cash used in investing activities

 

(157,513

)

 

 

(107,593

)

FINANCING ACTIVITIES:

 

 

 

Repurchases of Class A common stock

 

(234,784

)

 

 

(646,597

)

Proceeds from exercise of stock options

 

216,281

 

 

 

60,525

 

Proceeds from employee stock purchase plan

 

49,989

 

 

 

38,482

 

Taxes paid related to net settlement of restricted stock awards

 

(139,095

)

 

 

(78,516

)

Net cash used in financing activities

 

(107,609

)

 

 

(626,106

)

Increase (decrease) in cash and cash equivalents

 

474,334

 

 

 

(135,377

)

Cash and cash equivalents—Beginning of year

 

895,129

 

 

 

1,030,506

 

Cash and cash equivalents—End of year

$

1,369,463

 

 

$

895,129

 

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

December 31,

 

Year Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

 

 

 

 

 

 

 

 

Net income

$

182,229

 

 

$

97,323

 

 

$

393,076

 

 

$

178,940

 

Add back (deduct):

 

 

 

 

 

 

 

Depreciation and amortization expense

 

24,112

 

 

 

20,529

 

 

 

87,490

 

 

 

80,418

 

Stock-based compensation expense

 

129,229

 

 

 

121,435

 

 

 

494,699

 

 

 

491,621

 

Interest income, net

 

(24,956

)

 

 

(18,952

)

 

 

(78,842

)

 

 

(68,508

)

Provision for income taxes

 

39,370

 

 

 

63,353

 

 

 

114,226

 

 

 

89,055

 

Adjusted EBITDA

$

349,984

 

 

$

283,688

 

 

$

1,010,649

 

 

$

771,526

 

 

 

 

 

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

GAAP net income

$

182,229

 

 

$

97,323

 

 

$

393,076

 

 

$

178,940

 

Add back (deduct):

 

 

 

 

 

 

 

Stock-based compensation expense

 

129,229

 

 

 

121,435

 

 

 

494,699

 

 

 

491,621

 

Adjustment for income taxes

 

(14,733

)

 

 

(11,896

)

 

 

(55,472

)

 

 

(42,462

)

Non-GAAP net income

$

296,725

 

 

$

206,862

 

 

$

832,303

 

 

$

628,099

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share

$

0.36

 

 

$

0.19

 

 

$

0.78

 

 

$

0.36

 

 

 

 

 

 

 

 

 

GAAP weighted-average shares outstanding—diluted

 

506,843

 

 

 

499,682

 

 

 

501,924

 

 

 

500,182

 

 

 

 

 

 

 

 

 

Non-GAAP diluted earnings per share

$

0.59

 

 

$

0.41

 

 

$

1.66

 

 

$

1.26

 

 

 

 

 

 

 

 

 

Non-GAAP weighted-average shares used in computing Non-GAAP earnings per share, diluted

 

506,843

 

 

 

499,682

 

 

 

501,924

 

 

 

500,182

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250212539982/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