The Trade Desk(TTD) - 2025 Q3 - Quarterly Results

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].