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 it...
LOS ANGELES: 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 first quarter ended March 31, 2024.
“Q1 was a strong quarter for The Trade Desk as we delivered revenue of $491 million, accelerating growth to 28% year-over-year. Our outstanding performance to start the year underlines the value advertisers are placing on premium inventory on the open internet,” said Jeff Green, Co-founder and CEO of The Trade Desk. “With the continued strong growth of CTV, the growing ubiquity of UID2, new approaches to authentication, greater deployment of first-party data and retail data, and with significant AI advances in our Kokai platform, we are better positioned than ever to deliver premium value to advertisers and continue to gain market share.”
First Quarter 2024 Financial Highlights:
The following table summarizes our consolidated financial results for the three months ended March 31, 2024 and 2023 ($ in millions, except per share amounts):
| Three Months Ended March 31, | ||||||
|
| 2024 |
|
|
| 2023 |
|
GAAP Results |
|
|
| ||||
Revenue | $ | 491 |
|
| $ | 383 |
|
Increase in revenue year over year |
| 28 | % |
|
| 21 | % |
Net income | $ | 32 |
|
| $ | 9 |
|
GAAP diluted earnings per share | $ | 0.06 |
|
| $ | 0.02 |
|
|
|
|
| ||||
Non-GAAP Results |
|
|
| ||||
Adjusted EBITDA | $ | 162 |
|
| $ | 109 |
|
Adjusted EBITDA margin |
| 33 | % |
|
| 28 | % |
Non-GAAP net income | $ | 131 |
|
| $ | 114 |
|
Non-GAAP diluted earnings per share | $ | 0.26 |
|
| $ | 0.23 |
|
First Quarter and Recent Business Highlights:
Financial Guidance:
Second Quarter 2024 outlook summary:
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 excluded from these non-GAAP measures; 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, Non-GAAP Net Income and Non-GAAP Diluted 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 interest income, net; provision for (benefit from) income taxes; depreciation and amortization; and stock-based compensation. 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.
First Quarter 2024 Financial Results Webcast and Conference Call Details
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, 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. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) (Unaudited) | |||||||
| Three Months Ended | ||||||
|
| 2024 |
|
|
| 2023 |
|
Revenue | $ | 491,253 |
|
| $ | 382,803 |
|
Operating expenses (1): |
|
|
| ||||
Platform operations |
| 103,630 |
|
|
| 84,867 |
|
Sales and marketing |
| 121,725 |
|
|
| 97,222 |
|
Technology and development |
| 107,686 |
|
|
| 93,710 |
|
General and administrative |
| 129,555 |
|
|
| 130,312 |
|
Total operating expenses |
| 462,596 |
|
|
| 406,111 |
|
Income (loss) from operations |
| 28,657 |
|
|
| (23,308 | ) |
Total other income, net |
| (17,376 | ) |
|
| (13,700 | ) |
Income (loss) before income taxes |
| 46,033 |
|
|
| (9,608 | ) |
Provision for (benefit from) income taxes |
| 14,373 |
|
|
| (18,934 | ) |
Net income | $ | 31,660 |
|
| $ | 9,326 |
|
Earnings per share: |
|
|
| ||||
Basic | $ | 0.06 |
|
| $ | 0.02 |
|
Diluted | $ | 0.06 |
|
| $ | 0.02 |
|
Weighted-average shares outstanding: |
|
|
| ||||
Basic |
| 488,551 |
|
|
| 489,712 |
|
Diluted |
| 498,192 |
|
|
| 499,795 |
|
___________________________ | |||||||
(1) Includes stock-based compensation expense as follows: |
THE TRADE DESK, INC. STOCK-BASED COMPENSATION EXPENSE (Amounts in thousands) (Unaudited) | |||||
| Three Months Ended | ||||
|
| 2024 |
|
| 2023 |
|
|
|
| ||
Platform operations | $ | 5,555 |
| $ | 3,946 |
Sales and marketing |
| 20,292 |
|
| 14,123 |
Technology and development |
| 27,974 |
|
| 20,867 |
General and administrative (1) |
| 56,799 |
|
| 74,534 |
Total | $ | 110,620 |
| $ | 113,470 |
___________________________ | |||||
(1) Includes stock-based compensation expense related to a long-term CEO performance grant of $36 million and $60 million for the three months ended March 31, 2024 and 2023, respectively. |
THE TRADE DESK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (Unaudited) | |||||
| As of March 31, |
| As of December 31, | ||
ASSETS |
|
|
| ||
Current assets: |
|
|
| ||
Cash and cash equivalents | $ | 918,200 |
| $ | 895,129 |
Short-term investments, net |
| 501,360 |
|
| 485,159 |
Accounts receivable, net |
| 2,619,280 |
|
| 2,870,313 |
Prepaid expenses and other current assets |
| 57,579 |
|
| 63,353 |
Total current assets |
| 4,096,419 |
|
| 4,313,954 |
Property and equipment, net |
| 150,551 |
|
| 161,422 |
Operating lease assets |
| 201,859 |
|
| 197,732 |
Deferred income taxes |
| 154,849 |
|
| 154,849 |
Other assets, non-current |
| 60,119 |
|
| 60,730 |
Total assets | $ | 4,663,797 |
| $ | 4,888,687 |
|
|
|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
| ||
Current liabilities: |
|
|
| ||
Accounts payable | $ | 2,094,855 |
| $ | 2,317,318 |
Accrued expenses and other current liabilities |
| 131,287 |
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