The Trade Desk Reports First Quarter 2024 Financial Results
“Q1 was a strong quarter for
First Quarter 2024 Financial Highlights:
The following table summarizes our consolidated financial results for the three months ended
|
Three Months Ended
|
||||||
|
|
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:
- Strong Customer Retention: Customer retention remained over 95% during the first quarter, as it has for the past ten consecutive years.
-
Connected TV (CTV):
The Trade Desk offers the largest CTV inventory marketplace in the industry, giving advertisers unmatched access to premium content across major networks and ad-supported streaming services around the world. Because we do not compete in content or supply, we have built lasting relationships with premium publishers to help brands confidently engage their audiences and drive measurable results. Recent CTV updates include:Disney announced expanded partnership withThe Trade Desk with Disney Advertising’s Real-Time Ad Exchange (DRAX) Direct via a direct integration with OpenPath to meet advertiser demand at scale.-
NBCUniversal announced that, for the first time, the 2024 Paris Olympic Games inventory on Peacock will be available to buy programmatically via
The Trade Desk . -
Roku announced its plans to empower advertisers using
The Trade Desk with the ability to leverage Roku Media and audience and behavioral data, so brands can better understand and optimize their campaigns.
-
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:-
Times Internet, India’s most prominent digital media conglomerate home to brands such as
Times of India , Economic time, and GadgetsNow, has become the first digital partner inIndia to adopt UID2. - In January, DISH Media announced adoption of UID2 across its suite of traditional TV and OTT services including DISH TV and Sling TV.
- Data provider Lotame announced its adoption of UID2 to help enable cross-channel data interoperability, offering audience activation across desktop, mobile, and CTV.
-
TF1 and M6, two of the largest broadcasters in
France , announced their adoption of EUID to help their advertisers run effective campaigns with improved targeting capabilities.
-
Times Internet, India’s most prominent digital media conglomerate home to brands such as
-
OpenPath: OpenPath gives our clients a simplified, direct connection to participating premium publishers across the open internet. By supporting an objective, transparent supply path, OpenPath helps to maximize value for everyone involved. OpenPath is live with dozens of publishers representing over 11,000 destinations across connected TV, mobile, display and audio.
The Trade Desk is expanding its OpenPath technology in CTV withVizio andCox Media Group , among other publishers, trading their CTV inventory on the platform.
- OpenPass: OpenPass is an independent single sign-on (SSO) solution for the open internet that empowers consumers and publishers. OpenPass gives publishers control of the authentication of their regular visitors, so they can help advertisers score the relevance of their ad impressions.
-
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 - Business Insider Rising Stars of Adtech
- AdExchanger Top Women in Media & Ad Tech
- MM+M 40 under 40
-
Institutional Investor Awards - Most
-
Share Repurchases: We repurchased
$125 million of our Class A common stock in the first quarter of 2024. As ofMarch 31, 2024 , we had$575 million available and authorized for repurchases.
Financial Guidance:
Second Quarter 2024 outlook summary:
-
Revenue at least
$575 million -
Adjusted EBITDA of approximately
$223 million
We have 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, Non-GAAP Net Income and Non-GAAP Diluted EPS that supplement the Condensed Consolidated Statements of Operations of
First Quarter 2024 Financial Results Webcast and Conference Call Details
-
When:
May 8, 2024 at2:00 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 “800587” 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: 50391). Outsidethe United States , please dial 1-919-882-2331 (replay code: 50391). The audio replay will be available via telephone untilMay 15, 2024 .
About
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
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: |
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 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (Unaudited) |
|||||
|
As of |
|
As of |
||
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 |
|
|
137,996 |
Operating lease liabilities |
|
57,208 |
|
|
55,524 |
Total current liabilities |
|
2,283,350 |
|
|
2,510,838 |
Operating lease liabilities, non-current |
|
180,456 |
|
|
180,369 |
Other liabilities, non-current |
|
33,436 |
|
|
33,261 |
Total liabilities |
|
2,497,242 |
|
|
2,724,468 |
|
|
|
|
||
Stockholders' equity: |
|
|
|
||
Preferred stock |
|
— |
|
|
— |
Common stock |
|
— |
|
|
— |
Additional paid-in capital |
|
2,063,311 |
|
|
1,967,265 |
Retained earnings |
|
103,244 |
|
|
196,954 |
Total stockholders' equity |
|
2,166,555 |
|
|
2,164,219 |
Total liabilities and stockholders' equity |
$ |
4,663,797 |
|
$ |
4,888,687 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) |
|||||||
|
Three Months Ended |
||||||
|
|
2024 |
|
|
|
2023 |
|
OPERATING ACTIVITIES: |
|
|
|
||||
Net income |
$ |
31,660 |
|
|
$ |
9,326 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
21,742 |
|
|
|
19,293 |
|
Stock-based compensation |
|
110,620 |
|
|
|
113,470 |
|
Noncash lease expense |
|
12,751 |
|
|
|
11,917 |
|
Provision for expected credit losses on accounts receivable |
|
40 |
|
|
|
316 |
|
Other |
|
1,125 |
|
|
|
(1,310 |
) |
Changes in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
238,147 |
|
|
|
258,165 |
|
Prepaid expenses and other current and non-current assets |
|
3,331 |
|
|
|
(5,481 |
) |
Accounts payable |
|
(220,196 |
) |
|
|
(200,701 |
) |
Accrued expenses and other current and non-current liabilities |
|
(104 |
) |
|
|
(4,309 |
) |
Operating lease liabilities |
|
(13,644 |
) |
|
|
(13,113 |
) |
Net cash provided by operating activities |
|
185,472 |
|
|
|
187,573 |
|
INVESTING ACTIVITIES: |
|
|
|
||||
Purchases of investments |
|
(159,731 |
) |
|
|
(144,721 |
) |
Maturities of investments |
|
147,794 |
|
|
|
126,731 |
|
Purchases of property and equipment |
|
(7,224 |
) |
|
|
(9,156 |
) |
Capitalized software development costs |
|
(1,958 |
) |
|
|
(1,467 |
) |
Net cash used in investing activities |
|
(21,119 |
) |
|
|
(28,613 |
) |
FINANCING ACTIVITIES: |
|
|
|
||||
Repurchases of Class A common stock |
|
(125,280 |
) |
|
|
(291,534 |
) |
Proceeds from exercise of stock options |
|
10,804 |
|
|
|
10,365 |
|
Taxes paid related to net settlement of restricted stock awards |
|
(26,806 |
) |
|
|
(15,595 |
) |
Net cash used in financing activities |
|
(141,282 |
) |
|
|
(296,764 |
) |
Increase (decrease) in cash and cash equivalents |
|
23,071 |
|
|
|
(137,804 |
) |
Cash and cash equivalents—Beginning of period |
|
895,129 |
|
|
|
1,030,506 |
|
Cash and cash equivalents—End of period |
$ |
918,200 |
|
|
$ |
892,702 |
|
Non-GAAP Financial Metrics (Amounts in thousands, except per share amounts) 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
|
||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
|
|
||||
Net income |
$ |
31,660 |
|
|
$ |
9,326 |
|
Add back (deduct): |
|
|
|
||||
Depreciation and amortization expense |
|
21,742 |
|
|
|
19,293 |
|
Stock-based compensation expense |
|
110,620 |
|
|
|
113,470 |
|
Interest income, net |
|
(16,661 |
) |
|
|
(14,423 |
) |
Provision for (benefit from) income taxes |
|
14,373 |
|
|
|
(18,934 |
) |
Adjusted EBITDA |
$ |
161,734 |
|
|
$ |
108,732 |
|
|
|
|
|
||||
|
Three Months Ended
|
||||||
|
|
2024 |
|
|
|
2023 |
|
GAAP net income |
$ |
31,660 |
|
|
$ |
9,326 |
|
Add back (deduct): |
|
|
|
||||
Stock-based compensation expense |
|
110,620 |
|
|
|
113,470 |
|
Adjustment for income taxes |
|
(11,412 |
) |
|
|
(8,299 |
) |
Non-GAAP net income |
$ |
130,868 |
|
|
$ |
114,497 |
|
|
|
|
|
||||
GAAP diluted earnings per share |
$ |
0.06 |
|
|
$ |
0.02 |
|
|
|
|
|
||||
GAAP weighted-average shares outstanding—diluted |
|
498,192 |
|
|
|
499,795 |
|
|
|
|
|
||||
Non-GAAP diluted earnings per share |
$ |
0.26 |
|
|
$ |
0.23 |
|
|
|
|
|
||||
Non-GAAP weighted-average shares used in computing Non-GAAP earnings per share, diluted |
|
498,192 |
|
|
|
499,795 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240508315722/en/
Investors
Senior Manager, Investor Relations
ir@thetradedesk.com
Media
VP, Communications
melinda.zurich@thetradedesk.com
Source: