The Trade Desk Reports Third Quarter 2024 Financial Results

The Trade Desk has announced financial results for its third quarter ended September 30, 2024.

“The Trade Desk delivered strong performance in the third quarter, with revenue of $628 million, accelerating growth to 27%. This performance underlines the value that advertisers are placing on precision and transparency as they work with us to maximize the impact of their campaigns,” said Jeff Green, Co-founder and CEO of The Trade Desk. “As we enter our busiest time of year and look ahead to 2025, we have never been in a better position to capture greater share of the $1 trillion advertising TAM. 2024 has been a banner year for CTV. Many of the largest media companies are now working with us to help clients capture the full value of CTV advertising via programmatic. We are similarly excited about the momentum in retail media and the pace of adoption by advertisers who are taking advantage of our retail data marketplace. And the performance improvements that our clients are seeing with Kokai – our largest platform upgrade to date – showcase the value of audience-driven, AI-enabled innovation.”

Third Quarter 2024 Financial Highlights:

The following table summarizes our unaudited consolidated financial results for the three and nine months ended September 30, 2024 and 2023 ($ in millions, except per share amounts):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2024	2023	2024	2023
GAAP Results
Revenue	$628	$493	$1,704	$1,340
Increase in revenue year over year	27 %	25 %	27 %	23 %
Net income	$94	$39	$211	$82
Net income margin	15 %	8 %	12 %	6 %
GAAP diluted earnings per share	$0.19	$0.08	$0.42	$0.16
Non-GAAP Results
Adjusted EBITDA	$257	$200	$661	$488
Adjusted EBITDA margin	41 %	40 %	39 %	36 %
Non-GAAP net income	$207	$167	$536	$421
Non-GAAP diluted earnings per share	$0.41	$0.33	$1.07	$0.84

Third Quarter and Recent Business Highlights:

Strong Customer Retention: Customer retention remained over 95% during the third quarter, as it has for the past ten 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:
Spotify is extending its partnership with The Trade Desk, becoming one of the largest publishers to use OpenPath and UID2.
Roku announced its adoption of UID2, allowing advertisers to implement more precise targeting and a secure means to facilitate data collaboration with Roku Media.
Reach, a UK news publisher of 130 media brands, is adopting EUID as part of their commitment to protecting journalism with a best-in-class advertising experience for readers.
Global media company Motorsport Network announced adoption of EUID to provide relevant advertising while prioritizing consumer privacy and transparency for its 60 million authenticated users.
Cint announced integration of UID2 to provide robust, omnichannel brand lift measurement.

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

Share Repurchases: The Company repurchased $54 million of its Class A common stock in the third quarter of 2024. As of September 30, 2024, the Company had $521 million available and authorized for repurchases.

Financial Guidance:

Fourth Quarter 2024 outlook summary:

Revenue at least $756 million
Adjusted EBITDA of approximately $363 million

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 included in 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. 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, Adjusted EBITDA margin, Non-GAAP net income and Non-GAAP diluted earnings per share (“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 depreciation and amortization, stock-based compensation, 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 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.

Third Quarter 2024 Financial Results Webcast and Conference Call Details

When: November 7, 2024 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 “349188” 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: 51455). Outside the United States, please dial 1-919-882-2331 (replay code: 51455). The audio replay will be available via telephone until November 14, 2024.

Disclaimer: Information mentioned here has not been verified or endorsed by Agency Reporter and is in accordance with the press release shared by the company or their appointed representatives.