The Trade Desk Reports Fourth Quarter and Fiscal Year 2024 Financial Results
The Trade Desk also announced an additional share repurchase authorization, bringing the total amount of authorized future repurchases to
“The Trade Desk once again outpaced nearly every segment of digital advertising in 2024, delivering
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
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
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 outsidethe 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). Outsidethe 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
The Company also announced that its board of directors approved an additional
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
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
|
|
Year Ended
|
||||||||||||
|
|
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 |
|
___________________________
|
|||||||||||||||
THE TRADE DESK, INC. |
||||||||||||
STOCK-BASED COMPENSATION EXPENSE |
||||||||||||
(Amounts in thousands) |
||||||||||||
(Unaudited) |
||||||||||||
|
Three Months Ended
|
|
Year Ended
|
|||||||||
|
|
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 |
|
___________________________
|
||||||||||||
THE TRADE DESK, INC. |
|||||
CONSOLIDATED BALANCE SHEETS |
|||||
(Amounts in thousands) |
|||||
(Unaudited) |
|||||
|
As of December 31,
|
|
As of December 31,
|
||
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
Source: The Trade Desk, Inc.
