Core Insights - The Trade Desk, Inc. has expanded its partnership with HOY, enabling programmatic trading of connected TV advertising inventory through The Trade Desk's platform [2] - HOY will implement advanced identity and access technologies, including Unified ID 2.0 and OpenPath, to enhance targeting precision and advertising efficiency [2][5] Industry Trends - The global connected TV ad spending is projected to exceed $38 billion by 2027, reflecting a significant shift towards on-demand and streaming content [3] - In Hong Kong, over 40% of respondents in a 2024 survey reported a decrease in traditional TV viewing in favor of Internet-based streaming services [3] Company Developments - The Trade Desk highlighted the growth potential of Hong Kong's CTV programmatic advertising market, praising HOY's proactive adoption of UID2 and OpenPath [4] - HOY has successfully integrated UID2 on its CTV platform, which is currently live, while OpenPath is ready for deployment [6] Technology Impact - Unified ID 2.0 offers a next-generation identity solution for the open Internet, focusing on personalized experiences while ensuring user transparency [5] - OpenPath aims to streamline access to premium digital inventory, reducing intermediaries and enhancing revenue potential for publishers [5]

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]

Financial Performance Highlights - Revenue increased by 32% year-over-year to $706 million[4, 8] - Contribution ex-TAC increased by 25% year-over-year to $427 million[4, 8] - Adjusted EBITDA increased by 76% year-over-year[4, 12] - Adjusted EBITDA margin was 13%, expanding approximately 360 basis points year-over-year[4, 14] - The company has healthy cash & cash equivalents balance of $174 million and no debt outstanding as of March 31, 2025[4] Growth Drivers - CTV eclipsed 45% of total advertiser spend on the platform, reaching a new all-time high as a percent of total advertiser spend[4] - The company has seven consecutive quarters of YoY contribution ex-TAC growth over 20%[4, 10, 16] - The company has nine consecutive quarters of YoY adjusted EBITDA growth of over 30%[4, 14, 15] Share Repurchase Program - The company purchased 35 million shares of Class A common stock from May 1, 2024 through May 2, 2025 for a total of $465 million, including $249 million year-to-date through May 2, 2025[4, 22] - The company approved an increase to the existing share repurchase program on May 5, 2025, enabling the Company to repurchase up to an additional $50 million of the Company's common equity[4, 22] Q2 2025 Guidance - Revenue is expected to be between $770 million and $800 million, a 19% year-over-year increase at the midpoint[19] - Contribution ex-TAC is expected to be between $475 million and $495 million, a 17% year-over-year increase at the midpoint[19] - Adjusted EBITDA is expected to be between $105 million and $115 million, a 15% year-over-year increase at the midpoint[19] - Adjusted EBITDA Margin is expected to be between 22% and 23%[19]

Core Insights - The Trade Desk (TTD) is a $27 billion digital advertising platform that enables programmatic ad space purchasing across various channels and mediums [1] - The platform allows ad buyers to create, manage, and optimize data-driven campaigns across multiple devices, including computers, mobile devices, and connected TVs [2] - The company has faced declining earnings expectations, with a projected quarterly EPS of $0.25, reflecting a year-over-year decrease of 3.9% [5] - Revenue expectations remain strong at $574.27 million, indicating a 16.9% increase from the previous year [7] Company Overview - The Trade Desk operates a self-service, cloud-based platform for digital advertising, allowing for automated campaign management and optimal ad space acquisition [2] - The company was co-founded by Jeffrey Green, who previously co-founded AdECN, a demand-side advertising platform acquired by Microsoft [4] Earnings Expectations - The upcoming earnings report is anticipated to show a decline in EPS, with full-year 2025 estimates dropping over 10% [6] - The Zacks Rank indicates a -9.45% Earnings ESP for TTD, suggesting potential challenges in profit momentum [8]

Core Viewpoint - The recent market sell-off has created attractive buying opportunities for long-term investors, particularly in growth stocks like The Trade Desk, which has seen significant price declines despite its long-term potential [1][2]. Company Overview - The Trade Desk operates in the programmatic advertising platform sector, assisting ad buyers in placing ads effectively across various media, including podcasts, videos, and connected TV [3][4]. Recent Performance - The Trade Desk experienced a significant decline in stock price, approximately 60% down from its all-time high, following a disappointing Q4 earnings report where revenue fell short of projections [5][8]. - In Q4, The Trade Desk reported revenue of $741 million, missing the guidance of $756 million, and projected a revenue of $575 million for Q1, indicating a 17% growth slowdown [5][6]. Management Insights - Management acknowledged execution mistakes during Q4, attributing some challenges to a platform transition from Solimar to Kokai, expected to complete by 2025 [6]. - CEO Jeff Green expressed confidence in the long-term market potential despite short-term execution issues, likening the situation to a championship team facing challenges in a specific game [6][7]. Market Opportunity - The shift towards streaming services presents a substantial opportunity for programmatic advertising, allowing targeted ads to replace traditional broad-reaching advertisements [4]. - The Trade Desk's long-term growth potential remains strong, with expectations to capture a significant market share despite current valuation concerns [9][10]. Investment Perspective - The current stock price presents a rare buying opportunity, as The Trade Desk has lost its premium valuation, making it more attractive for long-term investors [8][10]. - A forward earnings valuation of 30 times is considered a better price compared to previous months, suggesting potential for growth into this valuation [9].