Upgrades - Piper Sandler upgraded Expedia (EXPE) to Neutral from Underweight with a price target of $250, increased from $190, following "very strong" Q3 results and positive Q4 guidance [2] - Macquarie upgraded Unity (U) to Outperform from Neutral with a price target of $50, up from $33, after a Q3 earnings beat as Vector continues to improve [2] - Oppenheimer upgraded JFrog (FROG) to Outperform from Perform with a price target of $75, citing strong quarterly performance and accelerating Cloud growth [3] - Benchmark upgraded Trade Desk (TTD) to Buy from Hold with a price target of $65, noting revenue growth of about 22% year-over-year excluding political acceleration [3] - KeyBanc upgraded Datadog (DDOG) to Overweight from Sector Weight with a price target of $230 post Q3 report, highlighting revenue acceleration excluding OpenAI and sustained visibility into OpenAI spending [4] Downgrades - Williams Trading downgraded Canada Goose (GOOS) to Sell from Hold with a price target of C$12, down from C$20, indicating that the company will not be sold or go private [5] - Needham downgraded CarMax (KMX) to Hold from Buy, citing a choppy macro recovery and increased competition leading to negative unit growth [5] - RBC Capital also downgraded CarMax to Sector Perform from Outperform with a price target of $34, down from $59 [5] - Needham downgraded Penn Entertainment (PENN) to Hold from Buy, removing the previous $22 price target after the early termination of the partnership with Disney's ESPN [5] - Goldman Sachs downgraded Sweetgreen (SG) to Sell from Neutral with a price target of $5, down from $10, due to pressures on both revenue and profitability [5] - UBS downgraded Cogent (CCOI) to Neutral from Buy with a price target of $27, down from $50, following softer results and a dividend cut [5]

Core Insights - The Trade Desk (TTD) reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.44 per share, and showing an increase from $0.41 per share a year ago, resulting in an earnings surprise of +2.27% [1] - The company achieved revenues of $739.43 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.96% and up from $628.02 million year-over-year [2] - The Trade Desk has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The immediate price movement of The Trade Desk's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $831.27 million, while the estimate for the current fiscal year is $1.76 on revenues of $2.86 billion [7] Industry Context - The Internet - Services industry, to which The Trade Desk belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact The Trade Desk's stock performance [5]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $739 million, representing an 18% year-over-year growth, and a 22% growth when excluding political spend from the previous year [39] - Adjusted EBITDA for the quarter was approximately $317 million, or about 43% of revenue [39] - Adjusted net income for Q3 was $221 million, or $0.45 per diluted share [41] - Free cash flow for Q3 was $155 million, with a strong cash and liquidity position of about $1.4 billion in cash and short-term investments at the end of the quarter [42] Business Line Data and Key Metrics Changes - CTV (Connected TV) continues to be the largest and fastest-growing channel, representing around 50% of the business in Q3 [39] - Mobile accounted for a low 30% share, display for a low double-digit share, and audio for around 5% [39] - The company is seeing strong growth in retail media and significant adoption across various verticals [5] Market Data and Key Metrics Changes - North America represented 87% of the business, while international markets accounted for about 13% [40] - Growth in international markets, particularly EMEA and APAC, is outpacing growth in North America [40] - Strong growth was noted in verticals such as medical health, automotive, and technology [40] Company Strategy and Development Direction - The company is focused on leading the open internet and enhancing operational efficiency through new leadership and structural changes [31][63] - Investments are being made in AI and product innovations to drive growth and improve client performance [38][39] - The company aims to capture a larger share of the $1 trillion advertising TAM as more dollars shift to programmatic [36] Management's Comments on Operating Environment and Future Outlook - The management describes the current macro environment as a "tale of two cities," with some brands facing pressure from tariffs and inflation, while others are experiencing strong momentum [72] - The company is optimistic about the potential of the open internet and believes that independent DSPs will capture the majority of open internet spend [28] - The focus remains on building a more accountable and metrics-driven culture to support long-term growth [66] Other Important Information - The company has repurchased nearly $2 billion through its share repurchase program since the first authorization in 2023 [42] - New product features and upgrades are expected to significantly contribute to growth in the coming years [27] Q&A Session Summary Question: Clarification on Amazon as a competitor and the evolving competitive environment - Management acknowledges Amazon and Google as significant players but emphasizes that their focus is primarily on owned and operated inventory, while The Trade Desk focuses on decisioned, data-driven buying across the open internet [49][51] Question: Areas for impact in the next couple of years - The CFO highlights the importance of disciplined resource allocation and a metrics-driven approach to drive growth and ROI [54][55] Question: Broader advertising and macro environment trends for 2026 - Management notes strong momentum across the business but acknowledges pressures in certain sectors due to external factors like tariffs and inflation [72]

Financial Data and Key Metrics Changes - The Trade Desk reported Q3 2025 revenue of $739 million, representing an 18% year-over-year growth. Excluding political spend from last year's Q3, revenue increased by approximately 22% [38][42] - Adjusted EBITDA for Q3 was approximately $317 million, or about 43% of revenue [38] - Adjusted net income for the quarter was $221 million, or $0.45 per diluted share [41] - Free cash flow was $155 million in Q3, with a strong cash and liquidity position of about $1.4 billion at the end of the quarter [42] Business Line Data and Key Metrics Changes - Connected TV (CTV) remains the largest and fastest-growing channel, with video (including CTV) representing around 50% of the business in Q3 [38] - Mobile accounted for a low 30% share, while display represented a low double-digit share, and audio was around 5% [38] - The Trade Desk's focus on retail media is seeing strong adoption across verticals, contributing to overall growth [5] Market Data and Key Metrics Changes - North America represented 87% of the business in Q3, while international markets accounted for about 13% [39] - Growth in international markets, particularly EMEA and APAC, is outpacing growth in North America [39] - Strong growth was noted in verticals such as medical health, automotive, and technology [40] Company Strategy and Development Direction - The company is focused on leading the open internet and enhancing operational efficiency through new leadership and structural changes [31][36] - The Trade Desk is investing in AI and automation to improve platform capabilities and drive productivity [18][63] - The company aims to capture a larger share of the $1 trillion advertising total addressable market (TAM) as more dollars shift to programmatic [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of the open internet and the advantages of an objective platform [28] - The company anticipates continued growth driven by innovations in AI and programmatic buying, particularly in CTV and retail media [43] - The Trade Desk is well-positioned to capitalize on the evolving advertising landscape, with a focus on operational rigor and long-term growth [43] Other Important Information - The company has repurchased nearly $2 billion through its share repurchase program since the first authorization in 2023 [42] - The board of directors approved a new authorization of $500 million for share repurchases [42] Q&A Session Summary Question: Clarification on Amazon as a competitor and the evolving competitive environment - Jeff Green acknowledged Amazon and Google as significant players but emphasized that their advertising efforts primarily focus on owned and operated inventory, with little competition in the open internet space [47][51] Question: Areas for impact in the organization - Jeff Green highlighted the importance of new leadership and structural changes aimed at strengthening the company's foundation and improving operational efficiency [59][61] Question: Trends in the advertising and macro environment for 2026 - Management noted the growing importance of the open internet and the potential for increased value in an objective platform, with a focus on disciplined resource allocation and international growth [69]

Financial Data and Key Metrics Changes - The Trade Desk reported Q3 2025 revenue of $739 million, representing an 18% year-over-year growth, and a 22% growth when excluding political spend from the previous year [40][41] - Adjusted EBITDA for Q3 was approximately $317 million, or about 43% of revenue [40] - Adjusted net income for the quarter was $221 million, or $0.45 per diluted share [42] - Free cash flow was $155 million in Q3, with a strong cash and liquidity position of about $1.4 billion at the end of the quarter [43] Business Line Data and Key Metrics Changes - Connected TV (CTV) remains the largest and fastest-growing channel, representing around 50% of the business in Q3 [40] - Mobile accounted for a low 30% share, display for a low double-digit share, and audio for around 5% [40] - The Trade Desk's focus on retail media is seeing rapid scaling and strong adoption across various verticals [5] Market Data and Key Metrics Changes - North America represented 87% of the business, while international markets accounted for about 13% [41] - Growth in international markets, particularly EMEA and APAC, is outpacing growth in North America [41] - Strong growth was noted in verticals such as medical health, automotive, and technology [41] Company Strategy and Development Direction - The company is focused on leading the open internet and enhancing operational efficiency through new leadership and structural changes [33][57] - Investments in AI and automation are aimed at improving campaign performance and operational productivity [19][58] - The Trade Desk is committed to building a more data-driven culture and enhancing client relationships through joint business plans (JBPs) [15][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of the open internet and the shift towards programmatic advertising [30] - The company anticipates continued growth in CTV and audio channels, driven by premium content and authenticated audiences [40][41] - The Trade Desk expects Q4 revenue to be at least $840 million, with an estimated growth of approximately 18.5% year-over-year when excluding political ad spend [44] Other Important Information - The company has repurchased nearly $2 billion in stock since the beginning of its repurchase program, effectively offsetting dilution [43] - The introduction of new products and upgrades, such as Audience Unlimited and trading modes, is expected to drive future growth [28][29] Q&A Session Summary Question: Clarification on Amazon as a competitor - Management clarified that while Amazon is a significant player in advertising, their focus is primarily on owned and operated inventory, which differs from The Trade Desk's emphasis on the open internet [46][49] Question: Areas for impact as new CFO - The new CFO highlighted the importance of disciplined resource allocation and a metrics-driven approach to drive growth and efficiency [52][53] Question: Broader advertising trends for 2026 - Management noted that the open internet is gaining importance, and the company is well-positioned to capitalize on this trend through its restructuring efforts [62]

Financial Performance - Revenue increased by $111 million, or 18%, for the three months ended September 30, 2025, and by $346 million, or 20%, for the nine months ended September 30, 2025, compared to the same periods in 2024[101]. - Net income for the three months ended September 30, 2025, was $115.5 million, a 23% increase from $94.2 million in 2024, and for the nine months, it was $256.4 million, a 22% increase from $210.8 million in 2024[89]. - The increase in revenue was attributed to higher gross spend on the platform, driven by increased spend per advertising campaign and new clients[101]. Operating Expenses - Platform operations expense increased by $39 million, or 32%, for the three months ended September 30, 2025, primarily due to a $36 million increase in hosting costs[102]. - Sales and marketing expense rose by $17 million, or 12%, for the three months ended September 30, 2025, driven by a $13 million increase in personnel costs[105]. - Total operating expenses as a percentage of revenue decreased from 83% in 2024 to 78% in 2025 for the three months ended September 30[99]. - The company anticipates continued increases in operating expenses as it invests in platform operations and technology development, including AI capabilities[104]. - Technology and development expenses increased by $10 million, or 9%, for the three months ended September 30, 2025, compared to the same period in 2024, primarily due to personnel costs[108]. - For the nine months ended September 30, 2025, technology and development expenses rose by $59 million, or 18%, driven by a $51 million increase in personnel costs[110]. - General and administrative expenses decreased by $8 million, or 5%, for the three months ended September 30, 2025, mainly due to a $14 million decrease in stock-based compensation[112]. Cash Flow and Capital Management - Cash flows from operating activities for the nine months ended September 30, 2025, were $681 million, up from $540 million in the same period of 2024[132]. - During the nine months ended September 30, 2025, the company repurchased 16 million shares of Class A common stock for an aggregate amount of $975 million[131]. - For the nine months ended September 30, 2025, the company used $413 million in cash for investing activities, a significant increase from $96 million in the same period of 2024[138][139]. - Cash used in financing activities for the nine months ended September 30, 2025, was $985 million, compared to $117 million in the prior year, primarily due to $958 million for stock repurchases[140][141]. - As of September 30, 2025, the company had working capital of $2.1 billion, including $653 million in cash and cash equivalents[122]. - The Amended Credit Facility had $443 million available as of September 30, 2025, with no outstanding debt balance[128]. Risk Management - A hypothetical one percentage point change in interest rates would result in an annual increase or decrease in investment income of approximately $8 million based on short-term investments as of September 30, 2025[151]. - An immediate 10% adverse change in foreign exchange rates would lead to a foreign currency loss of approximately $40 million as of September 30, 2025[152]. - The company has not used any derivative financial instruments to manage interest rate risk exposure as of September 30, 2025[151]. - The company has entered into forward contracts to hedge foreign currency risk, although there is no assurance of their effectiveness[153]. Strategic Focus - The company is focusing on global expansion, particularly in Europe and Asia, to capture growth opportunities in markets like the U.K., Germany, France, China, Japan, India, and Australia[95]. - The adoption of programmatic advertising is seen as a significant opportunity for growth, allowing the company to acquire new clients and increase revenue from existing ones[92]. - Sales and marketing expenses are expected to increase in absolute dollars as the company hires additional personnel and expands its international business[107]. - The company expects to continue making investments in infrastructure and technology to support its growing operations[94]. Accounting Policies - The company’s critical accounting policies include revenue recognition criteria and stock-based compensation expense, which have the greatest potential impact on financial statements[146]. - The company does not have any off-balance sheet arrangements as of September 30, 2025, other than indemnification agreements[142]. - The company does not expect the new provisions under the amended 2016 Incentive Award Plan to have a material impact on financial statements in the near term[147]. Other Income and Taxes - Total other income, net, decreased by $0.4 million for the three months ended September 30, 2025, primarily due to lower interest income and foreign currency transaction losses[115]. - The provision for income taxes increased by $31 million for the three months ended September 30, 2025, due to tax detriments associated with employee stock-based awards and higher pre-tax profitability[119]. - As of September 30, 2025, the company's total non-cancelable contractual obligations amounted to $1,142.1 million, with $811.7 million related to operating lease commitments[144].

Core Insights - The Trade Desk reported Q3 CY2025 results that exceeded market revenue expectations, with sales increasing by 17.7% year-on-year to $739.4 million [1][7] - The company provided better-than-expected guidance for Q4 CY2025 revenue at $840 million at the midpoint, which is 1% above analysts' estimates [1][7] - Non-GAAP profit per share was $0.45, aligning with analysts' consensus estimates [1][7] Company Overview - The Trade Desk operates as a cloud-based platform designed to assist advertisers and agencies in planning, managing, and optimizing digital advertising campaigns across various channels and devices [4] Revenue Growth - The Trade Desk has demonstrated a compounded annual growth rate of 30.7% over the last five years, indicating strong long-term sales performance [5] - The annualized revenue growth over the last two years is 23.4%, which is below the five-year trend but still suggests healthy demand [6] Financial Highlights - Q3 revenue was $739.4 million, surpassing analyst estimates of $719.4 million by 2.8% [7][8] - Adjusted EBITDA was $317.5 million, exceeding analyst estimates of $278.8 million, resulting in a 42.9% margin [7] - Operating margin improved to 21.8%, up from 17.3% in the same quarter last year [7] - Free cash flow margin increased to 21%, compared to 16.8% in the previous quarter [7] - The company's market capitalization stands at $23.32 billion [7]

Financial Performance - The Trade Desk reported Q3 2025 revenue of $739 million, an 18% increase year-over-year, and a total revenue of $2.049 billion for the nine months ended September 30, 2025, representing a 20% increase from the same period in 2024[2][3]. - Net income for Q3 2025 was $116 million, with a net income margin of 16%, compared to $94 million and 15% in Q3 2024[3][4]. - Adjusted EBITDA for Q3 2025 was $317 million, representing 43% of revenue, with a total of $796 million for the nine months ended September 30, 2025[3][4]. - Net income for the nine months ended September 30, 2025, was $256.354 million, an increase of 21.6% from $210.847 million in the same period of 2024[25]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $796.110 million, up 20.5% from $660.665 million in the same period of 2024[25]. - Non-GAAP net income for the nine months ended September 30, 2025, was $588.789 million, compared to $535.578 million for the same period in 2024, an increase of 9.9%[25]. - GAAP diluted earnings per share for the nine months ended September 30, 2025, was $0.52, compared to $0.42 for the same period in 2024, an increase of 23.8%[25]. Customer Metrics - Customer retention remained over 95% for the third consecutive year, indicating strong customer loyalty[4]. Shareholder Actions - The company announced a $500 million share repurchase authorization, having repurchased $310 million of its Class A common stock in Q3 2025[4][7]. Future Outlook - The Trade Desk expects Q4 2025 revenue to be at least $840 million and Adjusted EBITDA of approximately $375 million[7]. Product Innovations - New product innovations include Audience Unlimited, OpenAds, and a Pharma ad marketplace, enhancing the company's offerings in data-driven advertising[7]. - The company is building support for Unified ID 2.0, an industry-wide approach to identity that prioritizes user control and privacy[7]. Cash Flow and Assets - The company reported a net cash provided by operating activities of $681.132 million for the nine months ended September 30, 2025, compared to $540.055 million for the same period in 2024, an increase of 26.1%[23]. - Cash and cash equivalents decreased to $653.134 million as of September 30, 2025, from $1.369 billion at the end of 2024, a decline of 52.3%[21]. - Total current assets decreased to $5.120 billion as of September 30, 2025, from $5.336 billion at the end of 2024, a decrease of 4%[21]. Liabilities - Total liabilities increased to $3.340 billion as of September 30, 2025, from $3.163 billion at the end of 2024, an increase of 5.6%[21]. Executive Changes - The company appointed Anders Mortensen as Chief Revenue Officer, bringing extensive experience in scaling advertising businesses[4]. Stock-Based Compensation - Stock-based compensation expense for the three months ended September 30, 2025, was $121.316 million, compared to $128.510 million for the same period in 2024, a decrease of 5.5%[25].

Core Insights - The Trade Desk, Inc. reported strong third-quarter earnings, surpassing both revenue and earnings estimates [1][2]. Financial Performance - Quarterly earnings were 45 cents per share, exceeding the consensus estimate of 44 cents [2]. - Quarterly revenue reached $739.43 million, beating the Street estimate of $718.69 million, reflecting an 18% year-over-year growth [2][3]. Management Commentary - CEO Jeff Green highlighted the strong performance driven by new product innovations on the Kokai platform, which enhance data-driven advertising capabilities for leading brands [3][4]. - The company is positioned to leverage AI advancements in the advertising ecosystem, enabling clients to achieve data-rich buying across various channels [4]. Future Outlook - The Trade Desk anticipates fourth-quarter revenue to exceed $840 million, compared to the analyst estimate of $830.15 million [5].

Core Insights - Investors are showing a bullish stance on Trade Desk (NASDAQ:TTD), with significant options trading activity indicating potential upcoming movements in the stock [1][2] - The overall sentiment among large traders is mixed, with 56% bullish and 34% bearish positions noted [2] - Major market movers are focusing on a price range between $22.5 and $90.0 for Trade Desk over the last three months [3] Options Activity - A total of 23 uncommon options trades were identified for Trade Desk, with 14 puts amounting to $695,495 and 9 calls totaling $581,818 [2] - Recent options activity includes notable trades such as a bearish call sweep for a strike price of $31.9 and a bullish call sweep for a strike price of $10.0 [11] Market Status - The current trading volume for Trade Desk is 3,806,210, with the stock price down by 1.47% to $48.4 [17] - The consensus target price from market experts for Trade Desk is $53.0, with an analyst from Wells Fargo maintaining an Equal-Weight rating [14][15] Company Overview - Trade Desk operates a self-service platform for advertisers and ad agencies to programmatically purchase digital ad inventory across various devices [12] - The company generates revenue from fees based on a percentage of client advertising spend [12]