The Trade Desk Inc (TTD) Q2 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

GuruFocus News
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In This Article:

  • Revenue: $585 million, up 26% year-over-year.

  • Adjusted EBITDA: $242 million, approximately 41% of revenue.

  • Net Income: Adjusted net income of $197 million or $0.39 per fully diluted share.

  • Cash and Liquidity: Cash, cash equivalents, and short-term investments at $1.5 billion; no debt.

  • Free Cash Flow: $57 million for Q2.

  • Operating Expenses: $363 million, up 19% year-over-year, excluding stock-based compensation.

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

  • Q3 Revenue Outlook: Estimated at least $618 million, representing 25% growth year-over-year.

  • Q3 Adjusted EBITDA Outlook: Approximately $248 million.

Release Date: August 08, 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 strong revenue growth of 26% year-over-year, reaching $585 million in Q2 2024.

  • The company continues to gain market share, significantly outperforming the digital marketing industry.

  • Connected TV (CTV) is a major growth driver, with accelerated growth and increased adoption of UID2 by major streaming platforms.

  • The launch of Kokai, a new platform leveraging AI, has shown promising early results, improving cost per acquisition and performance metrics.

  • The Trade Desk Inc (NASDAQ:TTD) maintains a strong cash position with $1.5 billion in cash and no debt, providing flexibility for future investments.

Negative Points

  • The macroeconomic environment remains uncertain, with inflation and consumer weakness posing challenges for CMOs.

  • The competitive landscape in CTV is intensifying, with players like Amazon Prime Video expanding their ad business.

  • There is a need for more widespread adoption of UID2, especially in non-logged-in environments like browsers.

  • The company faces challenges in scaling partnerships with new premium inventory sources like Netflix.

  • The ongoing regulatory scrutiny and legal challenges faced by Google could create market uncertainties affecting The Trade Desk Inc (NASDAQ:TTD).

Q & A Highlights

Q: Jeff, could you provide your high-level thoughts on the current digital ad environment and what's allowing Trade Desk to outperform others? A: Jeff Green, CEO: Our team is performing exceptionally well, especially given the rapid changes in CTV. Unlike others, we are not a destination or sell-side company; we represent buyers. This positions us uniquely in a buyer's market. CMOs face pressure to deliver growth amidst economic challenges, and they turn to us for data-driven, rational volume. Our focus on the buy side allows us to gain market share in any environment.

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