Le Lézard
Classified in: Business
Subjects: EARNINGS, Conference Call, Webcast

The Trade Desk Reports First Quarter 2024 Financial Results


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 Desktm 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
March 31,

 

 

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
March 31,

 

 

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,
2024

 

As of December 31,
2023

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

THE TRADE DESK, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

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

March 31,

 

 

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

March 31,

 

 

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

 

 


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