Group 1: Market Overview - Current market volatility and economic uncertainty present both dangers and opportunities [1] - Many excellent stocks have been significantly undervalued due to the overall market sell-off [2] Group 2: Amazon - Amazon's shares are currently 22% below their peak earlier this year [4] - Concerns about tariffs are impacting the stock, but Amazon's e-commerce platform remains a strong alternative for consumers seeking low prices [5] - The high tariff levels are expected to be temporary, allowing Amazon to recover [6] - The long-term investment thesis for Amazon is strong, with growth potential in e-commerce, cloud computing, and artificial intelligence [7] Group 3: Alphabet - Alphabet's shares have dropped nearly 27% from their peak earlier this year, influenced by market jitters and antitrust lawsuits [8] - Antitrust rulings pose challenges for Google, but there is potential for favorable outcomes in appeals [10] - AI advancements may provide significant growth opportunities for Alphabet, particularly in Google Cloud and autonomous services [12] Group 4: The Trade Desk - The Trade Desk's share price has fallen almost 60% from its record high in Q4 2024 [13] - The decline is attributed to missing revenue estimates for the first time in 33 quarters, but management is taking steps to address the issues [14] - The shift from linear to digital advertising continues, and The Trade Desk remains a leading platform for targeted advertising [15]

Group 1 - The Trade Desk (TTD) is viewed as a generational "buy" opportunity despite recent investor pessimism due to a Q4 miss and short-term execution missteps [1] - Amrita, who runs a family office fund, focuses on investing in sustainable, growth-driven companies that aim to maximize shareholder equity [1] - The family fund's investment strategy is complemented by Amrita's award-winning newsletter, The Pragmatic Optimist, which emphasizes portfolio strategy, valuation, and macroeconomics [1] Group 2 - Amrita has a background in high-growth supply-chain start-ups and has worked with venture capital firms to enhance user acquisition [1] - The newsletter has gained recognition as a top finance newsletter and aims to simplify financial literacy and complex macroeconomic concepts for a broader audience [1]

Core Insights - JR Research is recognized as a top analyst in technology, software, and internet sectors, focusing on growth and GARP strategies [1] - The investment approach emphasizes identifying attractive risk/reward opportunities with robust price action to generate alpha above the S&P 500 [1][2] - The investment group Ultimate Growth Investing specializes in high-potential opportunities across various sectors with a focus on strong growth potential and contrarian plays [3] Investment Strategy - The strategy combines sharp price action analysis with fundamental investing, avoiding overhyped stocks while targeting battered stocks with recovery potential [2] - The investment outlook typically spans 18 to 24 months for the thesis to materialize, aiming for robust fundamentals and attractive valuations [3] Target Audience - The group is designed for investors looking to capitalize on growth stocks with strong fundamentals, buying momentum, and turnaround plays [3]

Core Insights - The Trade Desk (TTD) highlights that Connected TV (CTV) advertising is becoming a new driving force in global brand marketing, with 94% of advertisers reporting that CTV ad performance meets or exceeds expectations [1][2] Group 1: CTV Advertising Trends - Advertisers are significantly increasing their investment in CTV advertising as demand for high-quality digital content surges globally [1] - TTD's analysis indicates that brands need to move beyond short-term traffic thinking and adopt a comprehensive marketing strategy through CTV and other Open Internet channels to build deep emotional connections with high-value audiences [1][2] Group 2: Brand Evolution - Chinese brands are undergoing a transformation in their international strategy, moving from a focus on OEM and short-term sales (1.0 phase) to establishing brand identity (2.0 phase), and finally to valuing brand assets and long-term brand building (3.0 phase) [1][2] - Brands that have engaged with TTD to utilize CTV and other advertising channels have gained more flexibility and stronger bargaining power in uncertain external environments [2] Group 3: Long-term Brand Investment - The core advantage of high-quality internet advertising lies in the ability to integrate brands into content scenarios, enhancing trust and purchase intent among consumers [2] - As globalization deepens, Chinese brands are transitioning from "product export" to "brand export," with long-term brand investments providing them with greater market resilience [2]

Core Viewpoint - The Trade Desk has successfully rebounded from a disappointing quarter, demonstrating strong financial performance and renewed investor confidence through its innovative AI-driven platform and strategic upgrades [2][4][8]. Financial Performance - The Trade Desk reported first-quarter revenue of $616 million, reflecting a 25% year-over-year growth, up from 22% in the previous quarter [4]. - Adjusted earnings per share (EPS) reached $0.33, marking a 27% increase compared to the prior year [4]. - The company's results exceeded analysts' expectations, which forecasted revenue of $575.3 million and adjusted EPS of $0.25 [4]. Strategic Developments - The adoption of the Kokai platform, which integrates artificial intelligence for enhanced media buying and ad campaign measurement, has been a key driver of the company's recent success [5]. - The Trade Desk faced challenges in transitioning customers from its legacy platform to Kokai but has since reorganized to better capture emerging opportunities in connected TV, retail media, and audio [6]. Management Outlook - CEO Jeff Green expressed optimism about the company's future, highlighting strong customer retention rates above 95% and the positive impact of strategic upgrades implemented in the previous quarter [7]. - For the second quarter, The Trade Desk is guiding for revenue of at least $682 million, indicating a year-over-year growth of approximately 17% [9]. Market Position - The Trade Desk's stock is currently trading at 34 times forward earnings, which is a premium but significantly lower than its historical average of around 55 times [10]. - Following the release of its strong financial results, the stock saw an increase of over 11% in after-hours trading, indicating renewed investor interest [11].

Group 1: Earnings Performance - The Trade Desk reported quarterly earnings of $0.33 per share, exceeding the Zacks Consensus Estimate of $0.25 per share, and up from $0.26 per share a year ago, representing an earnings surprise of 32% [1] - The company posted revenues of $616.02 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 7.27%, compared to year-ago revenues of $491.25 million [2] - Over the last four quarters, The Trade Desk has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - The Trade Desk shares have declined approximately 52% since the beginning of the year, while the S&P 500 has only declined by 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $676.51 million, and for the current fiscal year, it is $1.79 on revenues of $2.84 billion [7] - The estimate revisions trend for The Trade Desk is currently unfavorable, resulting in a Zacks Rank 5 (Strong Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Internet - Services industry, to which The Trade Desk belongs, is currently in the bottom 40% of over 250 Zacks industries, suggesting that the industry outlook can materially impact stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Q1 revenue reached $616 million, representing a 25% year-over-year increase [48] - Adjusted EBITDA for the quarter was $208 million, reflecting a 34% margin [48] - Adjusted net income was $165 million, or $0.33 per fully diluted share [52] - Free cash flow was $230 million in Q1 [52] Business Line Data and Key Metrics Changes - CTV (Connected TV) remains the largest and fastest-growing advertising channel, representing a high 40s percentage share of the business [49] - Mobile accounted for a mid-30s percentage share of spend, while display represented a low double-digit share and audio around 5% [49] - The adoption of the Kokai platform accelerated, with about two-thirds of clients now using it, ahead of schedule [62] Market Data and Key Metrics Changes - North America represented approximately 88% of spend, while international markets accounted for about 12% [49] - International growth outpaced North America for the ninth consecutive quarter, particularly driven by CTV [50] Company Strategy and Development Direction - The company aims to capture market share in a more competitive landscape, especially as walled gardens face increased scrutiny [12][19] - The focus is on enhancing the supply chain through innovations like OpenPath and the acquisition of Sincerra [24][29] - The company is optimistic about the future of the open Internet and believes it is well-positioned to benefit from recent antitrust developments against competitors like Google [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic uncertainties and continue to grow [54] - The company anticipates revenue of at least $682 million in Q2, reflecting a 17% year-over-year growth [55] - Management highlighted the importance of being a trusted partner for clients during uncertain times [78] Other Important Information - The company has no debt and ended the quarter with approximately $1.7 billion in cash and short-term investments [52] - A new COO, Vivek Tundra, has been appointed to help drive growth [40] Q&A Session Summary Question: Can you elaborate on the progress from product and go-to-market changes? - Management noted that Q1 was strong, with significant upgrades contributing to performance and Kokai adoption accelerating [60][62] Question: What are the implications of the Google trial verdict for DSPs? - Management believes the verdict will lead to a fairer market, allowing the company to compete more effectively [72][73] Question: How does the company view Q2 guidance amid uncertainty? - Management remains optimistic about growth opportunities and the ability to support clients through strategic consulting [78][80] Question: How is the competitive landscape evolving, particularly with Amazon? - Management sees Amazon's focus on Prime Video as a limitation and believes the company can capture market share by aligning interests with buyers [85][90] Question: What progress is being made with OpenPath? - Management highlighted the positive developments and new partnerships through OpenPath, despite the current uncertainty in the upfront market [93]

Financial Data and Key Metrics Changes - Q1 revenue reached $616 million, representing a 25% year-over-year increase [45] - Adjusted EBITDA for the quarter was $208 million, reflecting a 34% margin [45] - Adjusted net income was $165 million, or $0.33 per fully diluted share [49] - Free cash flow was $230 million in Q1 [49] Business Line Data and Key Metrics Changes - CTV (Connected TV) remains the largest and fastest-growing advertising channel, representing a high 40s percentage share of the business [46] - Mobile accounted for a mid-30s percentage share of spend, while display represented a low double-digit share and audio around 5% [46] - The adoption of the Kokai platform accelerated, with about two-thirds of clients now using it, ahead of schedule [60] Market Data and Key Metrics Changes - North America represented approximately 88% of spend, while international markets accounted for about 12% [46] - International growth outpaced North America for the ninth consecutive quarter, driven by CTV [47] Company Strategy and Development Direction - The company aims to capture market share in a more competitive landscape, particularly in the open Internet space [19][40] - Innovations like OpenPath and the acquisition of Sincerra are expected to enhance supply chain efficiency and transparency [24][28] - The focus remains on maintaining independence and objectivity to differentiate from competitors like Google and Amazon [45][82] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate macroeconomic uncertainties and continue to grow [51] - The outlook for Q2 anticipates revenue of at least $682 million, reflecting a 17% year-over-year growth [51] - The company is optimistic about the open Internet's prospects following recent antitrust rulings against Google [19][70] Other Important Information - The company has no debt and ended the quarter with approximately $1.7 billion in cash and short-term investments [49] - A significant share repurchase program was executed, with $386 million of Class A common stock repurchased [50] Q&A Session Summary Question: Can you elaborate on the progress from product and go-to-market changes? - Management highlighted strong Q1 performance and noted that upgrades contributed to outperformance, with Kokai adoption ahead of schedule [56][60] Question: What are the implications of Google's antitrust verdict for DSPs? - Management believes the verdict will create a fairer market, allowing the company to compete more effectively against reduced competition from Google [65][70] Question: How does the company view Q2 guidance amid uncertainty? - Management remains optimistic, citing strong underlying business fundamentals and the ability to assist clients in navigating challenges [72][75] Question: How is the competitive landscape evolving, particularly with Amazon? - Management views Amazon's focus on Prime Video as a limitation, asserting that the company’s CTV growth is outpacing Amazon's advertising growth [80][82] Question: What progress is being made with OpenPath and expectations for the upfront? - Management anticipates a stronger performance for programmatic advertising during the upfronts, with ongoing improvements in OpenPath [90][92]

Revenue and Income - Revenue for the three months ended March 31, 2025, increased by $125 million, or 25%, to $616,021 thousand compared to $491,253 thousand for the same period in 2024[79] - Net income for the three months ended March 31, 2025, was $50,678 thousand, a decrease of $19,018 thousand or 60% compared to $31,660 thousand for the same period in 2024[79] Expenses - Platform operations expenses increased by $39 million, or 38%, to $142,839 thousand for the three months ended March 31, 2025, primarily due to higher hosting and personnel costs[90] - Sales and marketing expenses rose by $31 million, or 25%, to $152,743 thousand for the three months ended March 31, 2025, driven by increased personnel and marketing costs[93] - Technology and development expenses increased by $25 million, or 23%, to $132,402 thousand for the three months ended March 31, 2025, mainly due to higher personnel costs[95] - General and administrative expenses increased by $4 million, or 3%, to $133,585 thousand for the three months ended March 31, 2025, primarily due to higher administrative and personnel costs[97] Other Income and Cash Flow - Total other income, net, increased by $4 million for the three months ended March 31, 2025, primarily due to higher interest income on cash and cash equivalents[99] - For the three months ended March 31, 2025, net cash provided by operating activities was $291 million, an increase from $185 million in the same period of 2024[113] - The company’s cash flow from operating activities is influenced by growth in operations and the timing of collections from clients[114] Working Capital and Credit Facilities - As of March 31, 2025, the company had working capital of $2,174 million, including $1,119 million in cash and cash equivalents[102] - The company has $443 million available under the Amended Credit Facility as of March 31, 2025, net of $7 million in outstanding letters of credit[108] - The Amended Credit Facility matures on June 15, 2026, and the company was in compliance with all covenants as of March 31, 2025[109] Share Repurchases - The company repurchased 6.3 million shares of Class A common stock for $400 million during the three months ended March 31, 2025, with $631 million remaining available for future repurchases[112] - The company has a total of $1 billion authorized for share repurchases as of January 2025, following an additional $564 million authorization[112] Future Outlook - The company expects operating expenses to continue to increase in the foreseeable future as it invests in platform operations and technology[83] - The company anticipates growth opportunities in international markets, particularly in Europe and Asia, despite potential compliance and regulatory challenges[84] Investment and Foreign Exchange Risks - A hypothetical one percentage point change in interest rates would result in a corresponding increase or decrease in investment income of approximately $6 million annually[132] - An immediate 10% adverse change in foreign exchange rates would result in a foreign currency loss of approximately $31 million as of March 31, 2025[133] Lease Commitments - The company has non-cancelable operating lease commitments totaling $724.4 million as of March 31, 2025[125]

Financial Performance & Growth - The Trade Desk's revenue in 2024 reached $2445 million[12], representing a 26% increase from $1946 million in 2023[11] - Adjusted EBITDA for 2024 was $1011 million[12] - Gross spend on the platform in 2024 amounted to $12041 million[10], a 25% increase from $9611 million in 2023[10] - Q1 2025 revenue increased by 25% year-over-year, reaching $616.021 million compared to $491.253 million in Q1 2024[111] - Adjusted EBITDA for Q1 2025 was $207.875 million, compared to $161.734 million in Q1 2024[116] Market & Strategy - The open internet represents a $935 billion+ market[18] - The company emphasizes its role as an objective, independent, and transparent technology partner for agencies and brands[97, 49] - Connected TV (CTV) is highlighted as the largest and fastest-growing channel for the company[110] Global Reach - Approximately 12% of The Trade Desk's spend occurred internationally in 2024, while about 88% was in North America[91]