The Trade Desk (TTD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached $585 million, up 26% year-over-year, with strong growth in CTV, retail media, and identity solutions, outpacing the digital marketing industry and gaining market share.

• Net income for Q2 was $85 million, up 158% from the prior year, with GAAP diluted EPS of $0.17.

• Adjusted EBITDA for Q2 was $242 million (41% margin), up from $180 million (39% margin) last year.

• Growth was driven by strong performance in CTV, retail media, premium inventory access, and new partnerships with major streaming platforms.

• Customer retention remained above 95% for the tenth consecutive year.

Financial highlights

• Q2 revenue reached $585 million, a 26% increase year-over-year; six-month revenue was $1.08 billion, up 27%.

• Q2 net income was $85 million, up from $33 million a year ago; adjusted net income was $197 million, or $0.39 per diluted share.

• Adjusted EBITDA was $242 million, representing 41% of revenue.

• Free cash flow for Q2 was $57 million; cash and short-term investments totaled $1.5 billion with no debt.

• Operating income for Q2 was $94.7 million (16% margin).

Outlook and guidance

• Q3 2024 revenue expected to be at least $618 million, up 25% year-over-year.

• Q3 Adjusted EBITDA projected at approximately $248 million.

• Confident in long-term growth, driven by CTV, retail media, international expansion, identity strategy, and Kokai.

• Management expects continued investment in platform operations, technology, and sales to drive long-term growth.