In This Article:
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Total Spend on Platform: Exceeded $12 billion for 2024.
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Annual Revenue: Surpassed $2.4 billion, a 26% year-over-year increase.
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Adjusted EBITDA: Over $1 billion for the year.
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Free Cash Flow: More than $600 million for the year.
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Q4 Revenue: $741 million, a 22% year-over-year increase.
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Q4 Adjusted EBITDA: $350 million, representing a 47% margin.
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Q4 Operating Expenses: $416 million, up 23% from the previous year.
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Adjusted Net Income for Q4: $297 million or $0.59 per fully diluted share.
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Net Cash Provided by Operating Activities in Q4: $199 million.
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Free Cash Flow in Q4: $177 million.
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Cash and Liquidity Position: Approximately $1.9 billion in cash, cash equivalents, and short-term investments at year-end.
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Share Repurchase: $57 million of Class A common stock repurchased in Q4.
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Q1 2025 Revenue Outlook: At least $575 million, reflecting 17% year-over-year growth.
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Q1 2025 Adjusted EBITDA Estimate: Approximately $145 million.
Release Date: February 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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The Trade Desk Inc (NASDAQ:TTD) achieved a record-breaking year in 2024 with total spend on their platform exceeding $12 billion and revenue surpassing $2.4 billion, marking a 26% year-over-year growth.
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The company generated over $1 billion in adjusted EBITDA and delivered more than $600 million in free cash flow, highlighting the strength of their platform.
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The Trade Desk Inc (NASDAQ:TTD) has made significant structural changes, including the largest reorganization in company history, to improve clarity in roles and responsibilities and streamline client-facing teams.
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The company is focusing on expanding brand direct relationships, which are growing 50% faster than the rest of their business, and increasing resource allocation on brands.
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The Trade Desk Inc (NASDAQ:TTD) is investing heavily in AI to enhance targeting, optimization, forecasting, and identity measurement, positioning them for future growth.
Negative Points
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For the first time in 33 quarters, The Trade Desk Inc (NASDAQ:TTD) fell short of their own expectations, missing their guidance due to a series of small execution missteps.
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The company experienced slower than anticipated rollout of their Kokai platform, impacting short-term performance.
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There were challenges in the fourth quarter due to a polarized political environment and lower GDP, which affected advertising budgets.
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The Trade Desk Inc (NASDAQ:TTD) anticipates a modest increase in the growth rate of operating expenses in 2025, which may lead to some margin compression.
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The company faces competition from major players like Amazon, which is aggressively improving its DSP and expanding Prime Video ads, posing a competitive threat.