• Revenue: $628 million, 27% year-over-year growth.

• Adjusted EBITDA: $257 million, approximately 41% of revenue.

• Free Cash Flow: $222 million.

• Operating Expenses (Excluding Stock-Based Compensation): $391 million, up 24% year over year.

• Adjusted Net Income: $207 million or $0.41 per fully diluted share.

• Cash and Liquidity Position: $1.7 billion in cash, cash equivalents, and short-term investments; no debt.

• Geographical Revenue Distribution: North America 88%, International 12%.

• Q4 Revenue Outlook: At least $756 million, representing about 25% year-over-year growth.

• Q4 Adjusted EBITDA Outlook: Approximately $363 million.

• Warning! GuruFocus has detected 5 Warning Sign with TTD.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• The Trade Desk Inc (NASDAQ:TTD) reported a 27% year-over-year revenue growth for Q3 2024, showcasing strong market share gains.

• Connected TV (CTV) remains the fastest-growing channel for The Trade Desk Inc (NASDAQ:TTD), with significant partnerships with major players like Disney, NBCU, and Roku.

• The company is expanding its presence in retail media and international markets, contributing to its robust growth trajectory.

• The Trade Desk Inc (NASDAQ:TTD) continues to innovate with AI-driven products like Kokai, enhancing data-driven advertising capabilities.

• The company maintains a strong financial position with $1.7 billion in cash and no debt, allowing for strategic investments and share repurchases.

Negative Points

• The macroeconomic environment presents challenges, with CMOs facing increased pressure to demonstrate growth amidst consumer uncertainty.

• The Trade Desk Inc (NASDAQ:TTD) operates in a highly competitive landscape, with significant players like Google and Amazon posing challenges.

• Political advertising dynamics can lead to fluctuations in revenue, as some brands may reduce spending during polarized political periods.

• The complexity of the advertising ecosystem and supply chain inefficiencies can hinder growth and require ongoing strategic adjustments.

• The company faces challenges in scaling new initiatives like OpenPath and UID2, which are still in the early stages of adoption.

Q & A Highlights

Q: Can you talk about the near-term macro environment for Q3 and Q4, and how you view the setup for The Trade Desk next year? A: Jeff Green, CEO, highlighted that The Trade Desk is performing strongly, particularly in CTV, which is both the largest and fastest-growing channel. He noted that CMOs are under pressure to grow amidst uncertainty, which benefits The Trade Desk as brands seek data-driven solutions. Despite market tensions, the company is well-positioned with strong partnerships and innovations like Kokai and UID2.