The Trade Desk(TTD) - 2025 Q1 - Quarterly Report

Revenue and Income - Revenue for the three months ended March 31, 2025, increased by $125 million, or 25$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$31,660 thousand for the same period in 2024[79] Expenses - Platform operations expenses increased by $39 million, or 38$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$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$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$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]