The Trade Desk Reports Third Quarter Financial Results

LOS ANGELES, Nov. 10, 2016 (GLOBE NEWSWIRE) -- The Trade Desk, Inc. (NASDAQ:TTD), a provider of a global technology platform for buyers of advertising, today announced financial results for its third quarter ended September 30, 2016. 

"Media buyers find enormous value in the ability to look at millions of ad opportunities every second across devices and formats, using data to make the best decisions in real-time. We are excited to share today that we exceeded our own expectations for the third quarter," said Jeff Green, founder and CEO of The Trade Desk. "We've broken many of our previous records during the quarter including revenue of $53.0 million which is an 84% increase year over year. We delivered net income of $3.6 million and adjusted EBITDA of $16.6 million, distinguishing The Trade Desk from many comparable companies. Following our successfully completed IPO in September, we continue to see great momentum from our customers in the adoption of programmatic advertising on our platform and our global offerings. Because of our significant growth in international expansion, mobile, video, and television, we have significantly outgrown the industry and are massively outpacing the growth of the overall market."

Third Quarter 2016 Financial Highlights:

The following table summarizes our consolidated financial results for the quarters ended September 30, 2016 and 2015 ($ in millions, except per share amounts):
       
  Three Months
  Ended September 30,
    2016       2015  
GAAP Results      
Revenue $ 53.0     $ 28.8  
Increase in revenue year over year   84 %     157 %
Net Income $ 3.6     $ 4.6  
Diluted EPS(1) $ 0.06     $ 0.10  
       
Non-GAAP Results      
Adjusted EBITDA $ 16.6     $ 9.3  
Adjusted EBITDA Margin   31 %     32 %
Non-GAAP Net Income(1) $ 9.4     $ 5.4  
Non-GAAP Diluted EPS(1) $ 0.24     $ 0.15  
       
(1) Attributable to common stockholders-diluted.      
       

Third Quarter and Recent Business Highlights Include:
  • Completed Initial Public Offering: Began trading on the NASDAQ on September 21, 2016. Net proceeds from the IPO were approximately $73.6 million, after underwriting discounts and other offering costs.
  • Continued Omni-channel Growth: Third quarter gross spend with non-display campaigns increased to over half of gross spend for the first time driven by newer channels such as Mobile and Audio. Omni-channel solutions remain a strategic focus for us as the industry continues shifting toward transparency and programmatic buying.
  • Strong Customer Retention: Customer retention remained over 95% during the quarter, as it has for the previous 11 quarters.
  • New Products and Features: During the quarter, The Trade Desk issued a number of new product features and enhancements to its platform including a major new user interface update, new cutting edge version of our viewability product, hyperlocal mobile targeting, and reporting improvements to enterprise APIs, new cross-device targeting capabilities and audio channel offerings.
  • Momentum with Audio: The Trade Desk announced that it now offers ad buyers access to programmatic advertising with Audio leaders such as Spotify, Triton Digital and AdsWizz.
  • Global Footprint Expansion: Through the third quarter of 2016, The Trade Desk broadened its coverage with the opening of its Hong Kong and Orange County, California offices. Additional geographic expansion is planned for Europe and Asia Pacific.
  • Best Places to Work: The Trade Desk was ranked #12 among the 100 Best Places to Work for Millennials by Fortune and was named by Crain's New York Business 2016 as one of the best places to work in New York City.

Fourth Quarter Outlook:

The Trade Desk is providing its financial targets for the fourth quarter of fiscal year 2016. The Company's financial targets are as follows:
  • Revenue of $62 million
  • Adjusted EBITDA margin of 30%

Reconciliation of adjusted EBITDA guidance to the closest corresponding U.S. GAAP measure is not available without unreasonable efforts on a forward-looking basis due to the variability and complexity with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of our stock-based compensation expense that are directly impacted by unpredictable fluctuations in our share price. We expect the variability of the above charges could have a significant, and potentially unpredictable, impact on our future U.S. GAAP financial results.

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