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Trade Desk, Inc. (TTD)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue grew 25% year over year to $616.0M, exceeding S&P Global consensus of ~$575.3M; non-GAAP diluted EPS was $0.33 vs consensus ~$0.248, reflecting broad-based strength and early benefits from Q4 upgrades . Revenue Consensus Mean and Primary EPS Consensus Mean marked with asterisks are from S&P Global data.*
  • Adjusted EBITDA was $207.9M (34% margin), and GAAP diluted EPS was $0.10; management highlighted strong CTV and international growth, with Kokai adoption now at roughly two-thirds of clients .
  • Q2 2025 guidance: revenue at least $682M and adjusted EBITDA $259M; guide is roughly in line with Wall Street consensus for revenue ($686.0M), with continued emphasis on Kokai, UID2, OpenPath, and Sincera integration as execution priorities . Revenue Consensus Mean marked with an asterisk is from S&P Global data.*
  • Share repurchases totaled $386M in Q1 and legal/tactical shifts against “walled gardens” were cited as tailwinds for the open internet, positioning TTD to keep gaining share; management’s tone was confident and execution-focused .

What Went Well and What Went Wrong

What Went Well

  • Beat on revenue and EPS versus consensus: $616.0M revenue (+25% YoY) and non-GAAP EPS $0.33; CEO: “We delivered strong results in the first quarter, growing revenue 25% year-over-year…” . Revenue and EPS consensus values marked with asterisks are from S&P Global data.*
  • Kokai adoption and performance: ~two-thirds of clients using Kokai; clients that shifted saw 42% lower cost per unique reach, 24% lower cost per conversion, and 20% lower CPA; “Kokai…has been a game changer, and we are just getting started.” .
  • Strong CTV and international growth: Video (incl. CTV) remains largest and fastest-growing channel; international growth outpaced North America for the ninth consecutive quarter .

What Went Wrong

  • Macro volatility and brand caution: Management cited increased uncertainty, especially among large global brands; Q2 guide framed with macro stability caveat .
  • Margin compression sequentially: Adjusted EBITDA margin fell to 34% in Q1 from 47% in Q4; GAAP net income margin slipped to 8% from 25% in Q4 (seasonality and investments) .
  • Elevated stock-based compensation: SBC was $128.3M in Q1, including a $24M CEO performance grant in G&A; investors may watch dilution and expense discipline .

Financial Results

Consolidated Performance vs Prior Periods

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$628.0 $741.0 $616.0
GAAP Diluted EPS ($)$0.19 $0.36 $0.10
Net Income Margin (%)15% 25% 8%
Adjusted EBITDA ($USD Millions)$257.0 $350.0 $207.9
Adjusted EBITDA Margin (%)41% 47% 34%

Actuals vs S&P Global Consensus (Q1 2025)

MetricConsensusActual
Revenue ($USD Millions)$575.3*$616.0
Primary EPS ($)$0.248*$0.33 (Non-GAAP)

Values with asterisks retrieved from S&P Global.*

Key KPIs and Balance Sheet Highlights (Q1 2025)

KPIQ1 2025
Customer Retention>95%
Cash from Operations ($USD Millions)$291.4
Free Cash Flow ($USD Millions)$230.0 (CFO)
Share Repurchases ($USD Millions)$386.3
Stock-Based Compensation ($USD Millions)$128.3
CEO Performance Grant (G&A SBC) ($USD Millions)$24.0
Cash & Equivalents ($USD Millions)$1,118.5
Short-term Investments ($USD Millions)$621.8
Accounts Receivable, net ($USD Millions)$3,051.9
Accounts Payable ($USD Millions)$2,398.9
DSO (days)85
DPO (days)70
DebtNone (CFO)

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q1 2025≥$575 Actual: $616.0 Beat vs guide
Adjusted EBITDA ($USD Millions)Q1 2025≈$145 Actual: $207.9 Beat vs guide
Revenue ($USD Millions)Q2 2025N/A≥$682 New guidance
Adjusted EBITDA ($USD Millions)Q2 2025N/A≈$259 New guidance

Company did not provide guidance for GAAP net income, tax rate, OpEx, OI&E, or dividends .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
AI/Kokai adoption & performanceHighlighted Kokai as largest upgrade; Ventura OS preview; continued AI momentum ~2/3 of clients using Kokai; 42% lower cost per unique reach; 24% lower cost per conversion; 20% lower CPA Accelerating adoption/performance
Supply chain transparency (OpenPath)Partner adoption; UID2/EUID progress with major SSPs/publishers More direct integrations; case studies (NY Post +97% revenue, 8.6x fill; VIZIO +39% programmatic revenue) Expanding impact/efficiency
Regulatory/legal environmentN/A in prior press releasesCourts curbing walled garden practices; Google antitrust verdicts; Spotify ruling vs Apple Tailwind for open internet
CTV/Product performance“Banner year for CTV”; strong programmatic momentum CTV remains largest and fastest-growing channel; sustained growth Strengthening
Regional trendsStrong international momentum International outpaced NA for 9th consecutive quarter Consistent outperformance
Organization/ops upgradesReorganization and share repurchase authorization New COO Vivek Kundra; 100+ scrums shipping weekly; simplified GTM Operational rigor improving

Management Commentary

  • “We delivered strong results in the first quarter, growing revenue 25% year-over-year to $616 million… strategic upgrades in Q4 contributed to our outperformance” – Jeff Green, CEO .
  • “Kokai…has already proven itself and the results are fantastic. The injection of our industry-leading CoA AI tools across every aspect of our platform has been a game changer” – Jeff Green .
  • “Assuming the macro environment remains stable…in Q2, we expect revenue to be at least $682 million… adjusted EBITDA ~ $259 million” – Laura Schenkein, CFO .
  • “OpenPath…helps maximize value for everyone involved… publishers saw 8.6x fill-rate and +97% revenue (NY Post)” – Jeff Green .

Q&A Highlights

  • Product/go-to-market upgrades: Management emphasized Kokai adoption (~two-thirds of clients), AI injection across platform, and stronger product-engineering cadence; JVP pipeline growing faster than overall spend .
  • Regulatory outcomes: Multiple antitrust verdicts against Google and auction mechanics scrutiny viewed as catalysts for a fairer market favoring open internet and TTD’s objective model .
  • Q2 guide and macro: Guidance framed with macro stability assumption; management focused on “grabbing land” or accelerating growth depending on conditions .
  • Competitive landscape: Amazon’s DSP is positioned as primarily a buying tool for Prime Video; TTD’s neutrality cited as advantage for premium CTV publishers .
  • OpenPath and upfronts: Expect weaker linear and stronger programmatic/digital given uncertainty; Deal Desk product to enable more forward-like markets; OpenPath case studies highlight efficiency gains .

Estimates Context

  • Q1 2025 results vs consensus: Revenue $616.0M vs ~$575.3M*, Primary EPS $0.33 (non-GAAP) vs ~$0.248*; both beats. Coverage: ~33 revenue estimates and ~21 EPS estimates for Q1 . Numbers with asterisks retrieved from S&P Global.*
  • Q2 2025: Company guided ≥$682M revenue vs consensus ~$686.0M*, indicating roughly in-line expectations; focus remains on execution and macro monitoring . Numbers with asterisks retrieved from S&P Global.*

Key Takeaways for Investors

  • Strong beat and improved execution: Revenue and EPS exceeded consensus, with adjusted EBITDA ahead of prior Q1 guide; upgrades from Q4 are translating to performance .
  • Kokai adoption is a tangible driver: Efficiency gains (lower cost per unique reach/CPA/conversion) support budget unlocks and mix shift toward TTD platform .
  • CTV/international momentum intact: CTV remains largest and fastest-growing; international growth continues to outpace North America .
  • Supply chain transparency a differentiator: OpenPath + Sincera integration enhances visibility and buyer leverage; documented publisher monetization improvements .
  • Legal tailwinds for open internet: Antitrust outcomes and platform policy rulings may structurally improve competition vs walled gardens, aligning with TTD’s objective buyer model .
  • Capital allocation: Robust operating cash flow ($291.4M) and $386M buybacks in Q1; no balance sheet debt; continued opportunistic repurchases .
  • Near-term setup: Q2 guide roughly in line with consensus and framed with macro caveats; sustained product cadence (Deal Desk, Open Sincera) and UID2/OpenPath adoption are key narrative drivers .

Relevant Q1 2025 Press Releases

  • Agreement to acquire Sincera (Jan 15, 2025): Enhances supply chain transparency and data signal valuation for advertisers/publishers .
  • Vivek Kundra appointed COO (Mar 12, 2025): Adds operational rigor and scaling experience from Salesforce/US Government .

References:

  • Form 8‑K and Exhibit 99.1: Q1 2025 results, financial statements, and guidance .
  • Q1 2025 press release .
  • Q1 2025 earnings call transcript: prepared remarks and Q&A .
  • Prior quarters: Q4 2024 press release ; Q3 2024 press release .
  • Additional Q1 press releases: Sincera acquisition agreement ; COO appointment .

S&P Global disclaimer: All consensus estimate values marked with asterisks were retrieved from S&P Global.