Yahoo Finance

• Revenue: $616 million, a 25% increase year over year.

• Adjusted EBITDA: $208 million, representing a 34% margin.

• Net Income: Adjusted net income of $165 million or $0.33 per fully diluted share.

• Free Cash Flow: $230 million in Q1.

• Cash and Equivalents: Approximately $1.7 billion at the end of the quarter.

• Share Repurchase: $386 million of Class A common stock repurchased.

• CTV Growth: CTV remains the largest and fastest-growing advertising channel.

• Geographical Revenue Split: North America represented about 88% of spend; international represented about 12%.

• Operating Expenses: $433 million, up 23% from a year ago, excluding stock-based compensation.

• Q2 Revenue Outlook: Expected to be at least $682 million, reflecting 17% year over year growth.

• Q2 Adjusted EBITDA Outlook: Estimated to be approximately $259 million.

• Warning! GuruFocus has detected 2 Warning Sign with TTD.

Release Date: May 08, 2025

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 25% year-over-year revenue growth, surpassing expectations despite economic uncertainty.

• Kokai platform adoption accelerated, with two-thirds of clients now using it, leading to significant improvements in campaign performance.

• The company continues to gain market share in the digital marketing industry, outperforming other scaled players.

• Innovations like OpenPath and the acquisition of Sincera are enhancing supply chain transparency and efficiency.

• The Trade Desk Inc (NASDAQ:TTD) maintains a strong balance sheet with $1.7 billion in cash and no debt, allowing for strategic investments and share repurchases.

Negative Points

• Economic volatility and macro uncertainties are impacting client confidence, posing challenges for future growth.

• The company faces competitive pressures from major players like Google and Amazon, which could impact market dynamics.

• Despite strong performance, the company acknowledges the need for continuous upgrades and improvements to maintain its competitive edge.

• The Trade Desk Inc (NASDAQ:TTD) operates in a complex and rapidly changing digital advertising landscape, requiring constant adaptation.

• The company is exposed to risks associated with regulatory changes and antitrust rulings affecting major competitors like Google.

Q & A Highlights

Q: Can you elaborate on the progress from the product and go-to-market changes implemented last year? A: Jeff Green, CEO: The upgrades made to our business have significantly contributed to our strong performance in Q1. Kokai adoption accelerated, with two-thirds of our clients now using it, ahead of schedule. Our AI investments have improved campaign performance, with Kokai delivering 24% lower cost per conversion and 20% lower cost per acquisition. Our product and engineering teams are more effective, and our JVP pipeline is at an all-time high, indicating strong future growth potential.