Net income [USD, thousands]

Depreciation and amortization [USD, thousands]

Stock-based compensation [USD, thousands]

Noncash lease expense [USD, thousands]

Provision for expected credit losses on accounts receivable [USD, thousands]

Other, operating activities [USD, thousands]

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Maturities of investments [USD, thousands]

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Net cash used in investing activities [USD, thousands]

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Proceeds from exercise of stock options [USD, thousands]

Taxes paid related to net settlement of restricted stock awards [USD, thousands]

Net cash used in financing activities [USD, thousands]

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Business acquisition [USD, thousands]

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Cash and cash equivalents—End of period [USD, thousands]

d03b382e1cca4b2dd937e8b82eb2357c89cd741dcbcbc7af092de87272ca3e0d

Total Revenue (USD, thousands)

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Interest Expense (USD, thousands)

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Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

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Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Accounts Receivable (USD, thousands)

Inventory (USD, thousands)

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Property, Plant, and Equipment (PP&E) (USD, thousands)

Goodwill (USD, thousands)

Intangible Assets (USD, thousands)

Current Liabilities (USD, thousands)

Accounts Payable (USD, thousands)

Short-term Debt (USD, thousands)

Accrued Expenses (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

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Adjustments for Non-Cash Items (USD, thousands)

Stock-Based Compensation (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

9bc8c483bfcd03eea016b96bba544c9d171c89aba98b25725cfe5048f574b467

Percentage of Gross Billings from United States (percentage)

Percentage of Gross Billings from International (percentage)

Percentage of Gross Billings - Total (percentage)

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Revenue (USD, thousands)

Platform Operations Expense (USD, thousands)

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General and Administrative Expense (USD, thousands)

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Income from Operations (USD, thousands)

Total Other Income, Net (USD, thousands)

Income Before Income Taxes (USD, thousands)

Provision for Income Taxes (USD, thousands)

Earnings per Share, Basic (USD)

Earnings per Share, Diluted (USD)

Weighted-average Shares Outstanding, Basic (thousands)

Weighted-average Shares Outstanding, Diluted (thousands)

52e8b0a8e53080ee5d5aef298d96667226a27c8bc6f76a5f9edf1432873349eb

The **Operating Cash Flow** in Q4 2023 was lower due to several factors that impacted cash collections and payments. The company experienced a **$554 million increase in accounts receivable**, meaning cash was tied up due to delayed client collections. This was further exacerbated by a **$27 million increase in prepaid expenses and other assets**, which reduced available cash. Although a **$475 million increase in accounts payable** provided some offset by delaying payments to suppliers, it was not enough to overcome the cash drag from receivables and prepaid items. Additionally, a **$53 million decrease in operating lease liabilities** also contributed negatively to cash flow. These factors combined to result in the **lower net cash provided by operating activities** in Q4 2023.  **[0001671933-24-000014_ttd-20231231.htm:86]** 

Why was Operating Cash Flow so low in Q4 2023?

In Q2 2024, the decline in operating cash flow was driven by several factors. Despite an increase in **net income** (rising from **\$42,265 thousand** in 2023 to **\$116,689 thousand** in 2024) and slightly higher **stock-based compensation**, the overall cash flow was negatively impacted by significant changes in working capital. In particular, there were much larger increases in **accounts receivable** (**\$49,321 thousand** in 2024 versus **\$35,368 thousand** in 2023) and **prepaid expenses and other assets** (**\$52,064 thousand** in 2024 compared to **\$3,659 thousand** in 2023), along with a reduction in **accounts payable** (a decrease of **\$13,247 thousand** in 2024 compared to an increase of **\$50,995 thousand** in 2023) and a slightly larger decrease in **operating lease liabilities** in 2024 (**\$27,397 thousand** versus **\$25,102 thousand** in 2023) which all together contributed to the lower **net cash provided by operating activities** in Q2 2024.  **[0001671933-24-000089_ttd-20240808x8kexx991.htm:5]** 

Why did Operating Cash Flow decline in Q2 2024?

The documents do not provide a definitive reason for the negative Provision for Credit Losses in Q3 2024. They note that the significant decrease in the provision could stem from factors such as **improved credit quality of customers**, **better collections**, or **adjustments in the estimation methodology** for credit losses, but no specific details were provided in the documents.  **[0001671933-24-000120_ttd-20241107x8kexx991.htm:5]** **[0001671933-24-000122_ttd-20240930.htm:4]** 

Why did Provision for Credit Losses turn so negative in Q3 2024?

Financing cash flow was nearly neutral in **Q3 2024** because there was a marked **reduction in stock repurchases**—with repurchases declining to **$177,428** thousand compared to **$426,684** thousand previously—which significantly lowered cash outflows. This effect was largely offset by increased cash inflows from **stock option exercises** (**$127,690** thousand) and **Employee Stock Purchase Plan** proceeds (**$30,122** thousand), even as slightly higher outflows occurred from **taxes paid for restricted stock award settlements** (**$97,763** thousand versus **$55,397** thousand). These combined factors resulted in financing cash flows that were almost neutral for the period.  **[0001671933-24-000120_ttd-20241107x8kexx991.htm:5]** **[0001671933-24-000122_ttd-20240930.htm:26]** **[0001671933-24-000122_ttd-20240930.htm:4]** 

Why was Financing Cash Flow nearly neutral in Q3 2024?

97656bb668868eba021afc0feeed00eed1221126a0d869ffbb2e49b1f2682f00

**The surge in FY 2023 revenue was driven by a record gross spend of **$9.6 billion** on TTD's platform—reflecting increased advertiser activity and more campaigns—combined with a significant shift towards the rapidly growing **Connected TV (CTV)** channel. Additionally, strong performance in retail media through better utilization of first-party data, a consistent take rate, and robust international growth reinforced this upward trend.  **[0001157523-24-000260_a53896722ex99_1.htm:1]** **[0001671933-24-000014_ttd-20231231.htm:81]** **[TTD_3373712_9]** **[TTD_3373712_1]** **

What drove the surge in FY 2023 revenue?

The net income nearly tripled in FY 2023 primarily due to **significant revenue growth**, **improved operating efficiency**, and a **substantial increase in other income**. Revenue increased by **23%**, and operating income rose by **76%**, while total other income, driven largely by higher interest income, saw dramatic growth. These factors combined with a stable tax rate contributed to the net income jump from **$53,385 thousand in FY 2022** to **$178,940 thousand in FY 2023**.  **[0001157523-24-000260_a53896722ex99_1.htm:1]** **[0001671933-24-000014_ttd-20231231.htm:81]** **[0001671933-24-000014_ttd-20231231.htm:95]** 

Why did net income nearly triple in FY 2023?

The boost to **EPS in FY 2023** was driven by several factors. First, **revenue growth** played a key role, with revenues increasing by **23%** to reach **$1.95 billion** compared to FY 2022.  **[0001157523-24-000260_a53896722ex99_1.htm:1]**  Additionally, there was a significant rise in **net income** from **$53.39 million** in FY 2022 to **$178.94 million** in FY 2023.  **[0001157523-24-000260_a53896722ex99_1.htm:5]**  The company also maintained operational efficiency with a strong **adjusted EBITDA margin** of **40%** and implemented a **share repurchase program** worth **$646.6 million**, which helped reduce the number of outstanding shares and further boosted EPS.  **[0001157523-24-000260_a53896722ex99_1.htm:1]** **[0001157523-24-000260_a53896722ex99_1.htm:5]** 

What factors boosted EPS in FY 2023?

The turnaround in Q4 2023 was driven by several key factors. **Revenue growth** played a major role, as revenues increased by **23% year-over-year**—from **$491 million** in Q4 2022 to **$606 million** in Q4 2023—primarily driven by higher gross spend on platforms such as **Connected TV (CTV)** and retail media channels.  **[0001157523-24-000260_a53896722ex99_1.htm:1]** **[TTD_3373712_9]**  Furthermore, **operating expense management** improved as total operating expenses increased at a slower rate relative to revenue, with expenses as a percentage of revenue dropping from **93% to 90%**, thereby enhancing operational efficiency.  **[0001671933-24-000014_ttd-20231231.htm:81]**  The company also benefited from a **strong adjusted EBITDA margin** of **47%**, which underscored its effective balance between growth and profitability.  **[0001157523-24-000260_a53896722ex99_1.htm:1]**  Additionally, **channel and geographic growth**, notably in the CTV channel and international markets outperforming North America, contributed to the overall improvement in income from operations.  **[TTD_3373712_9]** **[TTD_3373712_8]** 

What drove the turnaround in operating income in Q4 2023?

The operating income in Q1 2024 was relatively low because, although there was strong revenue growth (a **28% increase** year-over-year to **$491,253,000**), the rise in operating expenses nearly matched this gain. Total operating expenses increased to **$462,596,000**, which meant that the expense-to-revenue ratio dropped only to **94%**. In addition, platform operations expenses saw a **22% increase** driven by higher hosting and personnel costs, further narrowing the margin between revenue and expenses.  **[0001671933-24-000051_ttd-20240508x8kexx991.htm:0]** **[0001671933-24-000059_ttd-20240331.htm:15]** **[0001671933-24-000059_ttd-20240331.htm:2]** 

Why was operating income so low in Q1 2024?

bdba2844d21b7822ac4a0ec46693a0aeac87609d975c9a599d734be294086317

The jump in **Cash and Cash Equivalents** in Q3 2024 was primarily driven by robust **operating cash flows**. In Q3 2024, TTD generated **$540 million** in net cash from operating activities, largely fueled by strong net income adjusted for non‐cash items and favorable working capital changes. This operational strength, coupled with **27% year-over-year revenue growth**, significantly boosted cash inflows, which more than offset the cash used in investing and financing activities (including share repurchases).  **[0001671933-24-000122_ttd-20240930.htm:25]** **[TTD_3407081_1]** **[TTD_3407081_9]** 

What drove the jump in Cash and cash equivalents in Q3 2024?

The **total assets** were lower in **Q1 2024** because they declined from **$4,888,687 thousand** at the end of **FY 2023** to **$4,663,797 thousand** in **Q1 2024** (a drop of **$224,890 thousand**). This reduction was primarily driven by a significant **decrease in accounts receivable** (a drop of **$251,033 thousand**), as well as **lower prepaid expenses and other current assets** (down by **$5,774 thousand**) and a **reduction in property and equipment, net** (down by **$10,871 thousand**). These negative factors were only partially offset by increases in cash and short-term investments.  **[0001671933-24-000051_ttd-20240508x8kexx991.htm:5]** **[0001671933-24-000059_ttd-20240331.htm:1]** 

Why were Total assets lower in Q1 2024?

The drop in **Total liabilities** in Q1 2024 was mainly due to a significant reduction in **accounts payable**. Accounts payable decreased from **$2,317,318 thousand** at the end of Q4 2023 to **$2,094,855 thousand** in Q1 2024—a decline of **$222,463 thousand**. This reduction was the primary contributor to the overall drop of **$227,226 thousand** in total liabilities, while other liabilities experienced relatively minor changes.  **[0001671933-24-000051_ttd-20240508x8kexx991.htm:5]** 

What contributed to the drop in Total liabilities in Q1 2024?

52d07fa4e45260dfb395b0cae6bb92b4a9cfd83faf68d23c4fa33816c3c14c3a

Trade Desk Inc (TTD)

Financials