The Trade Desk (TTD) Q4 2024 earnings summary

Executive summary

• Achieved record 2024 revenue of $2.45 billion, up 26% year-over-year, with $12 billion in platform spend and adjusted EBITDA surpassing $1 billion.

• Q4 revenue reached $741 million, up 22% year-over-year, but results missed internal expectations due to execution missteps and slower Kokai rollout.

• Major reorganization and leadership changes were implemented to drive operational efficiency and accelerate growth in CTV, retail media, and supply chain optimization.

• CTV remains the largest and fastest-growing channel, with significant reach and impact, and international growth outpacing North America.

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

Financial highlights

• Full-year revenue was $2.45 billion, up 26% year-over-year; Q4 revenue was $741 million, up from $606 million in Q4 2023.

• Adjusted EBITDA for 2024 was $1.01 billion (41% margin), up from $772 million in 2023; Q4 Adjusted EBITDA margin was 47%.

• FY2024 net income was $393 million (16% margin), up from $179 million (9% margin) in FY2023; Q4 net income was $182 million.

• Non-GAAP net income for 2024 was $832 million; non-GAAP diluted EPS was $1.66.

• Ended Q4 with $1.9 billion in cash and no debt; cash and cash equivalents at year-end were $1.37 billion.

Outlook and guidance

• Q1 2025 revenue expected to be at least $575 million, with Adjusted EBITDA projected at approximately $145 million.

• Modest increase in operating expense growth rate anticipated for 2025, with some margin deleverage expected.

• CapEx projected at approximately 5% of revenue; continued strong cash flow generation expected.

• CTV expected to remain the largest and fastest-growing channel; shopper marketing and international expansion are key growth drivers.

• The open internet advertising market is projected to exceed $935 billion, offering substantial TAM.