TTD
$76.46
Trade Desk
$.06
.08%
Earnings Details
2nd Quarter June 2021
Monday, August 9, 2021 8:30:00 AM
Tweet Share Watch
Summary

Trade Desk Misses

Trade Desk (TTD) reported 2nd Quarter June 2021 earnings of $0.16 per share on revenue of $280.0 million. The consensus earnings estimate was $0.13 per share on revenue of $257.8 million. The Earnings Whisper number was $0.20 per share. Revenue grew 100.9% on a year-over-year basis.

The company said it expects third quarter revenue of at least $282.0 million. The current consensus revenue estimate is $275.29 million for the quarter ending September 30, 2021.

The Trade Desk is a technology company that empowers buyers of advertising.

Results
Reported Earnings
$0.16
Earnings Whisper
$0.20
Consensus Estimate
$0.13
Reported Revenue
$280.0 Mil
Revenue Estimate
$257.8 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

The Trade Desk Reports Second Quarter Financial Results

LOS ANGELES--(BUSINESS WIRE)--The Trade Desk, Inc. (NASDAQ: TTD), a provider of a global technology platform for buyers of advertising, today announced financial results for its second quarter ended June 30, 2021.

“Revenue more than doubled year-over-year to $280 million in the second quarter. Our growth speaks to The Trade Desk’s position as the default DSP for the open internet. Nowhere is this more apparent than in Connected TV, as more premium streaming inventory becomes available to meet growing marketer demand for data-driven TV advertising,” said Jeff Green, founder and CEO of The Trade Desk. “From a customer perspective, more of the world’s leading brands, and their agencies, joined our platform, or expanded their relationship with us. This, and our robust international growth in the second quarter, gives us tremendous optimism moving forward. We also recently launched our new trading platform, Solimar, the biggest product launch in our company’s history. Solimar allows advertisers to take advantage of many opportunities in front of them today, with features such as simple and secure onboarding of first-party data; the industry’s most advanced cross-channel measurement marketplace; and advanced, multi-level goal-setting which allows our KOA AI technology to optimize campaigns for the trader.”

Second Quarter 2021 Financial Highlights:

The following table summarizes our consolidated financial results for the three and six months ended June 30, 2021 and 2020 ($ in millions, except per share amounts):

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

280.0

 

 

$

139.4

 

 

$

499.8

 

 

$

300.0

 

Increase in revenue year over year

 

 

101

%

 

 

(13

)%

 

 

67

%

 

 

7

%

Net Income

 

$

47.7

 

 

$

25.1

 

 

$

70.3

 

 

$

49.2

 

Diluted EPS

 

$

0.10

 

 

$

0.05

 

 

$

0.14

 

 

$

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

117.9

 

 

$

14.6

 

 

$

188.4

 

 

$

53.6

 

Adjusted EBITDA Margin

 

 

42

%

 

 

10

%

 

 

38

%

 

 

18

%

Non-GAAP Net Income

 

$

88.2

 

 

$

44.8

 

 

$

158.2

 

 

$

88.2

 

Non-GAAP Diluted EPS

 

$

0.18

 

 

$

0.09

 

 

$

0.32

 

 

$

0.18

 

Second Quarter and Recent Business Highlights Include:

  • Strong Customer Retention: Customer retention remained over 95% during the quarter, as it has for the previous 7 years
  • Launched our new trading platform Solimar
    Features include:
    • Upgraded UI to help set better campaign goals
    • The platform’s AI engine Koa™ then uses these goals as a guide to optimize media spend, helping the advertisers to achieve goals faster and more efficiently than ever before
    • Enables onboarding and activating first-party data easier than ever
    • Growing an audience without sacrificing control over consumer experience by utilizing an interoperable Unified ID 2.0 with some of the biggest names in identity
    • The most powerful measurement marketplace in the market today providing marketers the ability to measure the impact of campaigns across every channel and optimize in real time
  • Continued Industry-Wide Collaboration and Support for Unified ID 2.0: The Trade Desk is building support for Unified ID 2.0 (UID2), a new industry-wide approach to identity that preserves the value of relevant advertising, while putting user control and privacy at the forefront. The ID is an upgrade and alternative to third-party cookies. Recent pledges of support and integration with UID2 include:
    • Global provider of marketing solutions, Interpublic Group
    • Global media, marketing and corporate communications holding company, Omnicom Group
    • AMC Networks, an American entertainment company
    • Blockgraph, a technology company that makes the future of data-driven TV advertising possible
    • OpenAP, an advanced advertising company bringing simplicity and scale to audience-based campaigns in television
    • Snowflake, an enabler for organizations to mobilize their data with Snowflake’s Data Cloud
  • Industry Recognition: The Trade Desk was named one of the Top 100 Software Companies of 2021 by The Software Report and won Adweek Readers’ Choice: Best of Tech awards for both Demand Side Platform and Innovator of the Year categories. Additionally, The Trade Desk was included in this year’s Forbes Global 2000 list. And for the fifth consecutive year, The Trade Desk was selected as both a FORTUNE 2021 Best Medium Workplace and a Best Workplace in New York by Great Places to work.

Financial Guidance:

Our business has been impacted by the COVID-19 pandemic that has significantly impacted advertiser demand. Like many companies that are ad-funded, we are facing a period of higher uncertainty in our business outlook. We expect our business performance could be impacted by issues beyond our control, such as changing economic conditions or additional shelter-in-place orders that may or may not occur. Assuming that the economy continues to recover and we do not have any major COVID-19 related setbacks that may cause economic conditions to deteriorate, we estimate the following:

Third Quarter 2021 outlook summary:

  • Revenue at least $282 million
  • Adjusted EBITDA approximately $100 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 these non-GAAP measures; 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 Consolidated Statements of Income 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 expense (income), net, and provision for (benefit from) income taxes. 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 Consolidated Statements of Income. 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 Financial Results Webcast and Conference Call Details

  • When: August 9, 2021 at 8:30 A.M. Pacific Time (11:30 A.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 “705293” 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 1-877-481-4010 (replay code: 42356). Outside the United States, please dial 1-919-882-2331 (replay code: 42356). The audio replay will be available via telephone until August 23, 2021.

The Trade Desk, Inc. uses its Investor Relations website (http://investors.thetradedesk.com/investor-overview), its Twitter feed (@TheTradeDesk), LinkedIn page (https://www.linkedin.com/company/the-trade-desk/), and Facebook page (https://www.facebook.com/TheTradeDesk/), and Jeff Green’s Twitter feed (@jefftgreen) and 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 document 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 the industry and market trends, and the Company’s financial targets, such as revenue and Adjusted EBITDA. 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 and the impact of COVID-19 on the Company and its customers and partners, 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.

 

CONSOLIDATED STATEMENTS OF INCOME

 

(Amounts in thousands, except per share amounts)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

 

$

279,967

 

 

$

139,355

 

 

$

499,778

 

 

$

300,015

 

Operating expenses (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform operations

 

 

50,809

 

 

 

42,133

 

 

 

101,309

 

 

 

82,341

 

Sales and marketing

 

 

61,755

 

 

 

37,071

 

 

 

117,519

 

 

 

71,365

 

Technology and development

 

 

53,536

 

 

 

40,058

 

 

 

107,454

 

 

 

76,852

 

General and administrative

 

 

51,919

 

 

 

35,865

 

 

 

103,764

 

 

 

74,463

 

Total operating expenses

 

 

218,019

 

 

 

155,127

 

 

 

430,046

 

 

 

305,021

 

Income (loss) from operations

 

 

61,948

 

 

 

(15,772

)

 

 

69,732

 

 

 

(5,006

)

Total other expense, net

 

 

398

 

 

 

194

 

 

 

90

 

 

 

611

 

Income (loss) before income taxes

 

 

61,550

 

 

 

(15,966

)

 

 

69,642

 

 

 

(5,617

)

Provision for (benefit from) income taxes

 

 

13,853

 

 

 

(41,077

)

 

 

(697

)

 

 

(54,785

)

Net income

 

$

47,697

 

 

$

25,111

 

 

$

70,339

 

 

$

49,168

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.10

 

 

$

0.05

 

 

$

0.15

 

 

$

0.11

 

Diluted

 

$

0.10

 

 

$

0.05

 

 

$

0.14

 

 

$

0.10

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

475,512

 

 

 

461,356

 

 

 

474,172

 

 

 

458,184

 

Diluted

 

 

496,987

 

 

 

486,537

 

 

 

497,449

 

 

 

484,834

 

_______________________

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation expense as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCK-BASED COMPENSATION EXPENSE

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Platform operations

 

$

4,091

 

 

$

2,358

 

 

$

9,106

 

 

$

3,820

 

Sales and marketing

 

 

14,579

 

 

 

6,319

 

 

 

28,263

 

 

 

11,633

 

Technology and development

 

 

13,974

 

 

 

7,844

 

 

 

30,068

 

 

 

16,434

 

General and administrative

 

 

12,553

 

 

 

7,413

 

 

 

30,114

 

 

 

15,012

 

Total

 

$

45,197

 

 

$

23,934

 

 

$

97,551

 

 

$

46,899

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THE TRADE DESK, INC.

 

CONSOLIDATED BALANCE SHEETS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

As of

 

 

 

June 30,
2021

 

 

December 31,
2020

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

476,907

 

 

$

437,353

 

Short-term investments, net

 

 

228,150

 

 

 

186,685

 

Accounts receivable, net

 

 

1,527,651

 

 

 

1,584,109

 

Prepaid expenses and other current assets

 

 

114,558

 

 

 

102,170

 

Total current assets

 

 

2,347,266

 

 

 

2,310,317

 

Property and equipment, net

 

 

124,809

 

 

 

115,863

 

Operating lease assets

 

 

245,674

 

 

 

248,143

 

Deferred income taxes

 

 

45,124

 

 

 

50,168

 

Other assets, non-current

 

 

30,075

 

 

 

29,154

 

Total assets

 

$

2,792,948

 

 

$

2,753,645

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,222,220

 

 

$

1,348,480

 

Accrued expenses and other current liabilities

 

 

66,759

 

 

 

88,335

 

Operating lease liabilities

 

 

39,594

 

 

 

37,868

 

Total current liabilities

 

 

1,328,573

 

 

 

1,474,683

 

Operating lease liabilities, non-current

 

 

252,995

 

 

 

254,562

 

Other liabilities, non-current

 

 

9,034

 

 

 

11,255

 

Total liabilities

 

 

1,590,602

 

 

 

1,740,500

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

Additional paid-in capital

 

 

657,640

 

 

 

538,778

 

Retained earnings

 

 

544,706

 

 

 

474,367

 

Total stockholders' equity

 

 

1,202,346

 

 

 

1,013,145

 

Total liabilities and stockholders' equity

 

$

2,792,948

 

 

$

2,753,645

 

THE TRADE DESK, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended June 30,

 

 

 

2021

 

 

2020

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net income

 

$

70,339

 

 

$

49,168

 

Adjustments to reconcile net income to net cash provided by

operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

21,017

 

 

 

13,260

 

Stock-based compensation

 

 

97,551

 

 

 

46,899

 

Allowance for credit losses on accounts receivable

 

 

239

 

 

 

2,384

 

Noncash lease expense

 

 

19,553

 

 

 

15,825

 

Deferred income taxes

 

 

5,044

 

 

 

(11,697

)

Other

 

 

9,065

 

 

 

(2,372

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

49,802

 

 

 

293,577

 

Prepaid expenses and other assets

 

 

(6,812

)

 

 

(31,368

)

Accounts payable

 

 

(133,510

)

 

 

(214,396

)

Accrued expenses and other liabilities

 

 

(22,852

)

 

 

(7,418

)

Operating lease liabilities

 

 

(23,995

)

 

 

(4,735

)

Net cash provided by operating activities

 

 

85,441

 

 

 

149,127

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of investments

 

 

(164,031

)

 

 

(90,080

)

Sales of investments

 

 

4,539

 

 

 

 

Maturities of investments

 

 

116,769

 

 

 

85,183

 

Purchases of property and equipment

 

 

(18,499

)

 

 

(37,720

)

Capitalized software development costs

 

 

(2,675

)

 

 

(2,317

)

Net cash used in investing activities

 

 

(63,897

)

 

 

(44,934

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from line of credit

 

 

 

 

 

143,000

 

Repayment on line of credit

 

 

 

 

 

(1,000

)

Payment of debt financing costs

 

 

(1,852

)

 

 

 

Proceeds from exercise of stock options

 

 

26,339

 

 

 

41,969

 

Proceeds from employee stock purchase plan

 

 

22,758

 

 

 

15,035

 

Taxes paid related to net settlement of restricted

stock awards

 

 

(29,235

)

 

 

(7,729

)

Net cash provided by financing activities

 

 

18,010

 

 

 

191,275

 

Increase in cash and cash equivalents

 

 

39,554

 

 

 

295,468

 

Cash and cash equivalents—Beginning of period

 

 

437,353

 

 

 

130,876

 

Cash and cash equivalents—End of period

 

$

476,907

 

 

$

426,344

 

 

 

 

 

 

 

 

 

 

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

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

Net income

 

$

47,697

 

 

$

25,111

 

 

$

70,339

 

 

$

49,168

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

11,006

 

 

 

6,783

 

 

 

21,017

 

 

 

13,260

 

Stock-based compensation

 

 

45,197

 

 

 

23,934

 

 

 

97,551

 

 

 

46,899

 

Interest expense (income), net

 

 

194

 

 

 

(158

)

 

 

239

 

 

 

(975

)

Provision for (benefit from) income taxes

 

 

13,853

 

 

 

(41,077

)

 

 

(697

)

 

 

(54,785

)

Adjusted EBITDA

 

$

117,947

 

 

$

14,593

 

 

$

188,449

 

 

$

53,567

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP net income

 

$

47,697

 

 

$

25,111

 

 

$

70,339

 

 

$

49,168

 

Add back (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

45,197

 

 

 

23,934

 

 

 

97,551

 

 

 

46,899

 

Adjustment for income taxes

 

 

(4,682

)

 

 

(4,248

)

 

 

(9,689

)

 

 

(7,901

)

Non-GAAP net income

 

$

88,212

 

 

$

44,797

 

 

$

158,201

 

 

$

88,166

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted EPS

 

$

0.10

 

 

$

0.05

 

 

$

0.14

 

 

$

0.10

 

Non-GAAP diluted EPS

 

$

0.18

 

 

$

0.09

 

 

$

0.32

 

 

$

0.18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares

outstanding—diluted

 

 

496,987

 

 

 

486,537

 

 

 

497,449

 

 

 

484,834

 

 

Investors
Chris Toth
Vice President Investor Relations, The Trade Desk
ir@thetradedesk.com
310-334-9183

Media
Ian Colley
Vice President Public Relations, The Trade Desk
ian.colley@thetradedesk.com
914-434-3043

Source: The Trade Desk, Inc.