0001671933false00016719332024-08-082024-08-08

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 8, 2024
THE TRADE DESK, INC.
(Exact name of registrant as specified in its charter)
Delaware
001-37879
27-1887399
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
42 N. Chestnut Street
Ventura, California 93001
(Address of principal executive offices) (Zip Code)
(805) 585-3434
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of each exchange on which registered
Class A Common Stock, par value $0.000001 per share
TTD
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o


Item 2.02    Results of Operations and Financial Condition. 
On August 8, 2024, The Trade Desk, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information in this Current Report on Form 8-K and Exhibit 99.1 attached hereto is intended to be furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 9.01    Financial Statements and Exhibits.
(d)    The following exhibits are being filed herewith:
Exhibit No.
Description
99.1
104
Cover Page Interactive Data File (formatted as Inline XBRL).


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
THE TRADE DESK, INC.

Date: August 8, 2024
By:
/s/ Laura Schenkein
Laura Schenkein
Chief Financial Officer
(Principal Financial and Accounting Officer)


Exhibit 99.1
The Trade Desk Reports Second Quarter 2024 Financial Results
LOS ANGELES--(BUSINESS WIRE)--August 8, 2024--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 second quarter ended June 30, 2024.
“Q2 was another strong quarter for The Trade Desk, with revenue of $585 million, representing 26% year-over-year growth,” said Jeff Green, Co-founder and CEO of The Trade Desk. “We’ve made significant strides in CTV, retail media and identity, empowering the world’s largest brands to buy premium media on the open internet with unprecedented agility and precision. As Kokai ramps, we’re intuitively surfacing value for advertisers, integrating data into every decision, advancing the full power of AI as a co-pilot, and enabling advertisers to maximize the potential of their first party data. With ongoing innovations in Kokai, the widespread adoption of UID2, and the expanding use of retail data, we will continue to deliver exceptional value to advertisers and grow our leadership in key high growth markets such as CTV.”
Second Quarter 2024 Financial Highlights:
The following table summarizes our consolidated financial results for the three and six months ended June 30, 2024 and 2023 ($ in millions, except per share amounts):
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
GAAP Results
Revenue$585 $464 $1,076 $847 
Increase in revenue year over year26 %23 %27 %22 %
Net income$85 $33 $117 $42 
GAAP diluted earnings per share$0.17 $0.07 $0.23 $0.08 
Non-GAAP Results
Adjusted EBITDA$242 $180 $404 $288 
Adjusted EBITDA margin41 %39 %38 %34 %
Non-GAAP net income$197 $139 $328 $254 
Non-GAAP diluted earnings per share$0.39 $0.28 $0.66 $0.51 
Second Quarter and Recent Business Highlights:
•Strong Customer Retention: Customer retention remained over 95% during the second 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:
◦Netflix announced it will expand buying capabilities to include The Trade Desk as one of its main programmatic partners for advertisers.
◦FOX announced expanded partnership with The Trade Desk through integration of UID2 and OpenPath across FOX brands and the AdRise technology platform.
◦E.W. Scripps is streamlining its programmatic ad buying process for advertisers through the adoption of OpenPass and UID2, making it the first CTV publisher to adopt OpenPass.
◦At Forward ‘24 in Canada, CBC announced its Olympics inventory will be available programmatically for the first time ever via The Trade Desk.



•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:
◦Roku announced its adoption of UID2, allowing advertisers to implement more precise targeting and a secure means to facilitate data collaboration with Roku Media.
◦SiriusXM Media announced Pandora Media as the first audio publisher to adopt UID2.
◦LG Ad Solutions announced it is integrating UID2 to enable advertisers to leverage their first-party data across LG’s extensive audience network in a privacy-conscious manner.
◦TF1, M6, and Media Figaro, three of the leading broadcasters and publishers in France, announced their adoption of EUID to help their advertisers run effective campaigns with improved targeting capabilities.

•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 did not repurchase any shares of its Class A common stock in the second quarter of 2024. As of June 30, 2024, the Company had $575 million available and authorized for repurchases.

Financial Guidance:
Third Quarter 2024 outlook summary:
•Revenue at least $618 million
•Adjusted EBITDA of approximately $248 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 excluded from 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, 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 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.

Second Quarter 2024 Financial Results Webcast and Conference Call Details
•When: August 8, 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 “250454” 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: 50885). Outside the United States, please dial 1-919-882-2331 (replay code: 50885). The audio replay will be available via telephone until August 15, 2024.
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
June 30,		Six Months Ended
June 30,
2024202320242023
Revenue$584,550 $464,254 $1,075,803 $847,057 
Operating expenses (1):
Platform operations110,459 86,654 214,089 171,521 
Sales and marketing133,867 111,489 255,592 208,711 
Technology and development110,035 98,308 217,721 192,018 
General and administrative135,469 126,130 265,024 256,442 
Total operating expenses489,830 422,581 952,426 828,692 
Income from operations94,720 41,673 123,377 18,365 
Total other income, net(17,772)(18,254)(35,148)(31,954)
Income before income taxes112,492 59,927 158,525 50,319 
Provision for income taxes27,463 26,988 41,836 8,054 
Net income$85,029 $32,939 $116,689 $42,265 
Earnings per share:
Basic$0.17 $0.07 $0.24 $0.09 
Diluted$0.17 $0.07 $0.23 $0.08 
Weighted-average shares outstanding:
Basic489,353 488,431 488,952 489,068 
Diluted500,040 499,349 499,117 499,570 
___________________________
(1) Includes stock-based compensation expense as follows:
THE TRADE DESK, INC.
STOCK-BASED COMPENSATION EXPENSE
(Amounts in thousands)
(Unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Platform operations$7,272 $4,967 $12,827 $8,913 
Sales and marketing25,068 18,800 45,360 32,923 
Technology and development32,509 26,689 60,483 47,556 
General and administrative (1)
61,491 66,627 118,290 141,161 
Total$126,340 $117,083 $236,960 $230,553 
___________________________
(1) Includes stock-based compensation expense related to a long-term CEO performance grant of $36 million and $48 million for the three months ended June 30, 2024 and 2023, respectively, as well as $71 million and $108 million for the six months ended June 30, 2024 and 2023, respectively.


THE TRADE DESK, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)
As of June 30,
2024		As of December 31,
2023
ASSETS
Current assets:
Cash and cash equivalents$1,009,363 $895,129 
Short-term investments, net497,168 485,159 
Accounts receivable, net2,905,533 2,870,313 
Prepaid expenses and other current assets110,776 63,353 
Total current assets4,522,840 4,313,954 
Property and equipment, net191,912 161,422 
Operating lease assets229,411 197,732 
Deferred income taxes154,849 154,849 
Other assets, non-current60,910 60,730 
Total assets$5,159,922 $4,888,687 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable$2,336,589 $2,317,318 
Accrued expenses and other current liabilities120,218 137,996 
Operating lease liabilities61,579 55,524 
Total current liabilities2,518,386 2,510,838 
Operating lease liabilities, non-current202,769 180,369 
Other liabilities, non-current33,361 33,261 
Total liabilities2,754,516 2,724,468 
Stockholders' equity:
Preferred stock— — 
Common stock— — 
Additional paid-in capital2,217,043 1,967,265 
Retained earnings188,363 196,954 
Total stockholders' equity2,405,406 2,164,219 
Total liabilities and stockholders' equity$5,159,922 $4,888,687 


THE TRADE DESK, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
Six Months Ended June 30,
20242023
OPERATING ACTIVITIES:
Net income$116,689 $42,265 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization42,624 39,359 
Stock-based compensation236,960 230,553 
Noncash lease expense26,460 24,325 
Provision for expected credit losses on accounts receivable133 318 
Other(4,117)(8,423)
Changes in operating assets and liabilities:
Accounts receivable(49,321)(35,368)
Prepaid expenses and other current and non-current assets(52,064)(3,659)
Accounts payable(13,247)50,995 
Accrued expenses and other current and non-current liabilities(9,989)399 
Operating lease liabilities(27,397)(25,102)
Net cash provided by operating activities
266,731 315,662 
INVESTING ACTIVITIES:
Purchases of investments(317,969)(316,307)
Maturities of investments314,598 274,401 
Purchases of property and equipment(29,339)(16,556)
Capitalized software development costs(4,424)(3,415)
Net cash used in investing activities
(37,134)(61,877)
FINANCING ACTIVITIES:
Repurchases of Class A common stock(125,280)(336,494)
Proceeds from exercise of stock options38,164 27,772 
Proceeds from employee stock purchase plan30,122 21,316 
Taxes paid related to net settlement of restricted stock awards(58,369)(31,054)
Net cash used in financing activities
(115,363)(318,460)
Increase (decrease) in cash and cash equivalents114,234 (64,675)
Cash and cash equivalents—Beginning of period895,129 1,030,506 
Cash and cash equivalents—End of period$1,009,363 $965,831 


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
June 30,		Six Months Ended
June 30,
2024202320242023
Net income$85,029 $32,939 $116,689 $42,265 
Add back (deduct):
Depreciation and amortization expense20,882 20,066 42,624 39,359 
Stock-based compensation expense126,340 117,083 236,960 230,553 
Interest income, net(17,817)(17,507)(34,478)(31,930)
Provision for income taxes27,463 26,988 41,836 8,054 
Adjusted EBITDA$241,897 $179,569 $403,631 $288,301 
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
GAAP net income$85,029 $32,939 $116,689 $42,265 
Add back (deduct):
Stock-based compensation expense126,340 117,083 236,960 230,553 
Adjustment for income taxes(13,886)(10,525)(25,298)(18,824)
Non-GAAP net income$197,483 $139,497 $328,351 $253,994 
GAAP diluted earnings per share$0.17 $0.07 $0.23 $0.08 
GAAP weighted-average shares outstanding—diluted500,040 499,349 499,117 499,570 
Non-GAAP diluted earnings per share$0.39 $0.28 $0.66 $0.51 
Non-GAAP weighted-average shares used in computing Non-GAAP earnings per share, diluted
500,040 499,349 499,117 499,570 


Contacts
Investors
Jake Graves
Senior Manager, Investor Relations
The Trade Desk
ir@thetradedesk.com

Media
Melinda Zurich
VP, Communications
The Trade Desk
melinda.zurich@thetradedesk.com


v3.24.2.u1
Cover
Aug. 08, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Aug. 08, 2024
Entity Registrant Name TRADE DESK, INC.
Entity Incorporation, State or Country Code DE
Entity File Number 001-37879
Entity Tax Identification Number 27-1887399
Entity Address, Address Line One 42 N. Chestnut Street
Entity Address, City or Town Ventura
Entity Address, State or Province CA
Entity Address, Postal Zip Code 93001
City Area Code 805
Local Phone Number 585-3434
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class A Common Stock, par value $0.000001 per share
Trading Symbol TTD
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Entity Central Index Key 0001671933
Amendment Flag false
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