The tech giant is a data center business.In this podcast, Motley Fool analyst Asit Sharma and host Ricky Mulvey discuss:Why Wall Street is shrugging off Nvidia's 78% yearly revenue growth.CEO Jensen Huang's vision for AI in the coming years.Short-sellers targeting digital ad seller AppLovin.To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our beginner's guide to investing in stocks. When you're ready to invest, check out this to ...

On Feb. 12, The Trade Desk (TTD -4.48%) announced its fourth-quarter results, and by some measures, it was another strong report, with revenue up 22% year over year. But the company's revenue of $741 million also fell short of the $758 million analysts expected, and the stock plunged in response. It's currently down 43% from where shares traded ahead of the report, and down 50% from the peak it hit in December. "While we are proud of these accomplishments, we are disappointed that we fell short of our own e ...

Financial Data and Key Metrics Changes - Revenue in Q4 2024 increased 14% to $153 million, with a 40% adjusted EBITDA margin [6][37] - Full year 2024 revenue grew 12% to $530.1 million, achieving a 36% adjusted EBITDA margin [6][38] - Adjusted EBITDA for Q4 increased 29% to $61.4 million, with a margin increase from 35% to 40% year-over-year [44][49] - Net income for Q4 was $15.3 million or $0.09 per share, compared to $10.2 million or $0.06 per share in Q4 2023 [45][49] Business Line Data and Key Metrics Changes - Optimization revenue grew 11% to $70.6 million in Q4 [39] - Measurement revenue increased 12% to $59.1 million, with social media revenue growth at 25% [40] - Publisher revenue rose 30% to $23.4 million, driven by new product adoption and increased political spend [41] - International revenue grew 13% to $49 million, representing 32% of total revenue [42] Market Data and Key Metrics Changes - 32% of Q4 revenue came from markets outside of the Americas, with 45% of measurement revenue from international sources [17][42] - The US CTV market is projected to exceed $47 billion by 2028, indicating significant growth potential [15] Company Strategy and Development Direction - The company aims for continued double-digit growth in 2025, focusing on performance, reach expansion, and innovation [7][27] - Plans to expand into China and enhance operations in key APAC markets, unlocking significant digital ad spend opportunities [18][69] - The introduction of new capabilities in measurement and optimization products is expected to drive future growth [7][27] Management's Comments on Operating Environment and Future Outlook - Management noted a positive impact from political spending on the publisher side, while advertiser spending improved in retail and CPG sectors [104] - The shift towards real-time bidding in CTV is viewed as a tailwind for the business, with strong growth in publisher performance [105][106] - The company expects to deliver double-digit profitable growth in 2025, supported by ongoing investments in differentiated products [33][50] Other Important Information - The appointment of Jill Puttman as interim CFO was announced, bringing extensive finance experience to the role [34][83] - The company reduced long-term debt by $30 million to $35 million during the quarter [46] Q&A Session Summary Question: Impact of political spending and CTV shift - Political spending had limited impact on advertiser business but benefited the publisher side, with strong growth in retail and CPG [104] - The shift to real-time bidding in CTV is seen as beneficial, with a 30% year-over-year growth in the segment [105][106] Question: Pricing dynamics and measurement growth - The company experienced competitive pricing dynamics during RFPs, with strong adoption of total media quality (TMQ) across social platforms [110][111] - The pre-bid product on Meta has shown a 71% reduction in wasted ad spend, indicating strong early adoption [115] Question: Long-term visibility with pre-bid and post-bid products - The focus on performance and linking media quality signals with cost data enhances revenue forecasting and visibility [124][125] - The company is seeing strong adoption of pre-bid products, which is expected to improve overall business visibility [124] Question: Growth outlook by segment - Total advertiser revenue is expected to have double-digit growth, with measurement anticipated to see single-digit growth initially [128]

Financial Data and Key Metrics Changes - For Q4 2024, the company reported revenue of approximately $235 million, reflecting a decrease of 5% year-over-year [29] - Ex TAC gross profit was $68.3 million, an increase of 7% year-over-year, continuing a trend of acceleration and outpacing revenue growth for the seventh consecutive quarter [31] - Adjusted EBITDA grew 21% year-over-year to $17 million, indicating consecutive margin improvement [33] Business Line Data and Key Metrics Changes - The Outbrain DSP saw a growth of 45% in advertiser spend in 2024, driven by superior performance across various formats [11] - Revenue generated from supply beyond the traditional feed represented approximately 30% of revenue in Q4 2024, up from 26% in Q4 2023 [12] - The company successfully renewed agreements with key publishing partners and secured new business partnerships, demonstrating the value proposition offered to premium publishers [15] Market Data and Key Metrics Changes - Total ad spend was materially flat year-over-year during Q4 but increased year-over-year on a full-year basis [29] - Net revenue retention of publishers was 86%, reflecting downward pressure on ad impressions from a key supply partner [30] - The company has over 2 billion unique users and proprietary data signals through exclusive content partnerships with premium media properties [21] Company Strategy and Development Direction - The merger with Teads aims to combine branding and performance capabilities, enhancing the company's position in the open Internet advertising space [7] - The company plans to leverage AI to create a seamless consumer journey across various platforms, enhancing the effectiveness of advertising campaigns [17] - The focus on expanding beyond traditional feeds and enhancing performance capabilities is expected to drive future growth [49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the integration of Teads and the potential for significant synergies, estimating an annual impact of $65 million to $75 million on adjusted EBITDA [36] - The company anticipates a return to overall pro forma growth by the second half of the year, with positive trends observed in the legacy Teads business [75] - Management highlighted the importance of CTV as a growing segment within performance marketing, with expectations for increased advertiser interest [84] Other Important Information - The company completed the acquisition of Teads on February 3, 2024, and will operate under the Teads brand moving forward [6][100] - The company ended Q4 with $166 million in cash and no debt, indicating a strong liquidity position [34] - The company does not intend to repurchase shares in the near term due to the recent acquisition [35] Q&A Session Summary Question: Transition of publishers and advertisers onto the combined platform - Management is focused on unifying teams and cross-selling, with a clear roadmap for integration and performance capabilities delivery [46] Question: Demand for native advertising - Management noted ongoing growth in performance solutions and a shift towards performance-driven advertising [50] Question: Drivers of growth in Outbrain DSP - The growth is attributed to enhanced bidding technology and the ability to broaden the share of wallet from performance advertisers [55] Question: Progress of revenue outside traditional feeds - Management expects continued investment in this area, viewing it as a growth driver [63] Question: Performance of legacy Teads business - Management reported a recovery in performance and positive trends in January and February following the merger [72] Question: Synergies from the merger - Management estimates $60 million in cost synergies and $5 to $15 million in revenue synergies, with a focus on optimizing traffic acquisition costs [90][96] Question: Future of the Teads brand and ticker symbol - The company will operate under the Teads name and plans to change the ticker symbol over time [100] Question: Funding for news advertising - Management sees early positive trends in advertising spending on news, although it remains a small part of the overall inventory mix [103]

Financial Data and Key Metrics Changes - Revenue growth for 2024 was 9% over 2023, more than doubling the previous year's growth rate [10][45] - Adjusted EBITDA margins expanded to 32%, marking a return to the "Rule of 40" benchmark [11][46] - Q4 revenue, excluding a specific DSP impact and political advertising, increased by 16% year-over-year [12][39] - Full-year net income was $12.5 million, or $0.23 per diluted share [56] Business Line Data and Key Metrics Changes - CTV revenue more than doubled in 2024, representing 20% of total revenue in Q4 [45][52] - Mobile app business grew 16% year-over-year, also accounting for 20% of total revenue [45] - Emerging revenue streams doubled in 2024, with Connect, the curation and data business, growing 140% year-over-year [53][96] Market Data and Key Metrics Changes - Omni-channel video revenue reached over 40% in Q4, with half coming from CTV [20] - The company now works with 80% of the top 30 global streamers, up from 70% a quarter ago [21][103] - Political advertising contributed approximately 6% of total revenue in 2024 [68] Company Strategy and Development Direction - The company is focusing on high consumer engagement channels such as CTV, mobile app, and commerce media to drive growth [14][40] - Investments in product innovation and generative AI are expected to enhance operational efficiency and customer engagement [17][36] - The strategy includes diversifying revenue streams and increasing the value of ad impressions through data curation [34][95] Management's Comments on Operating Environment and Future Outlook - Management anticipates a challenging first half of 2025 due to a DSP headwind but expects underlying business growth of 15%+ year-over-year [61][72] - The company is confident in its ability to execute its growth strategy and deliver healthy margins [72] - The shift towards sell-side targeting is seen as a significant opportunity, driven by the decline of third-party cookies [90][92] Other Important Information - The company ended 2024 with $141 million in cash and marketable securities and no debt [48][60] - A share repurchase program has resulted in an 8% reduction in fully diluted shares outstanding [48][60] - The company is targeting a full-year adjusted EBITDA margin in the high 20% range for 2025 [70] Q&A Session Summary Question: Can you talk about month-on-month trends and overall CPM trends? - Management noted that the softness in Q4 was primarily due to one DSP's bidding changes, while CPMs were positive throughout the year [76][78] Question: Why is the impact limited to display, and is there a need to address the relationship with the DSP? - The impact is due to a structural change in the DSP's bidding approach, which has historically affected display formats [84][86] Question: What are the secular shifts in the industry driving the data opportunity? - The industry is shifting towards sell-side targeting due to the decline of cookies and the strength of first-party data [90][92] Question: Can you discuss the success and growth of Activate? - Activate has seen 6x growth year-over-year, simplifying the digital advertising supply chain and driving performance [112][114] Question: What is the outlook for CTV and its evolution? - CTV is transitioning towards programmatic buying, with significant opportunities in auction packages and managing yield for publishers [134][136]

Financial Data and Key Metrics Changes - Magnite generated contribution ex-TAC of $607 million and processed ad spend of over $6 billion, achieving record highs for the company [9][10] - Adjusted EBITDA reached $197 million, with free cash flow of $118 million, both record figures [10][39] - Total revenue for Q4 was $194 million, up 4% from Q4 2023, while contribution ex-TAC was $180 million, an increase of 9% [39][40] - Net income for the quarter was $36 million, compared to $31 million for Q4 2023, with GAAP earnings per diluted share increasing 50% to $0.24 [45][46] Business Line Data and Key Metrics Changes - CTV contribution ex-TAC increased 23% year-over-year, while DV+ contribution ex-TAC grew only 1% due to unusual spending patterns post-election [11][40] - CTV accounted for 43% of contribution ex-TAC, with mobile at 40% and desktop at 17% [41] - The company reported strong growth in CTV driven by ad spend growth and a stabilizing year-over-year average take rate [12] Market Data and Key Metrics Changes - Significant growth in CTV was noted from partners like Roku, LG, Vizio, and Netflix, with expectations for continued growth in live sports [13][14] - The DV+ business experienced a post-election spending pause, leading to a drop in CPMs by 15% to 20% [36][37] - Political advertising contributed approximately 6.5% to contribution ex-TAC in Q4, while for the full year it was 3.2% [41][123] Company Strategy and Development Direction - The company is focused on expanding its CTV platform and enhancing its technology stack, including the introduction of generative AI tools [20][21] - Magnite aims to differentiate itself from competitors by emphasizing its unique technology and direct relationships with major streaming platforms [24][30] - The company is optimistic about the growth of its agency marketplaces and the potential for new revenue streams from data initiatives [16][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the rebound of the DV+ business and the overall strength of the CTV market [17][38] - The company anticipates total contribution ex-TAC to grow above 10% in 2025, with adjusted EBITDA expected to grow in the mid-teens [51][52] - Management highlighted the importance of maintaining a healthy value exchange between buyers and sellers in the open Internet ecosystem [31][87] Other Important Information - The company ended the year with $483 million in cash and a net leverage ratio reduced to 0.4% [39][48] - Capital expenditures for 2024 were $52 million, with expectations of approximately $60 million for 2025, primarily focused on tech stack efficiency [47][80] Q&A Session Summary Question: Context on Q1 guidance and early 2025 trends - Management noted a rebound in DV+ growth in the mid to high single digits, while CTV typically sees lower growth in Q1 [56][57] Question: SMB participation in CTV - Management indicated that new entrants need to couple CTV ads with DV+ metrics to assess efficacy, highlighting a significant appetite for CTV [60][62] Question: Medium-term growth expectations for CTV - Management expects to outpace market growth, projecting closer to 20% CTV growth when excluding political contributions [66][72] Question: GenAI strategy and CapEx implications - The focus of new tools is to enhance existing client efficiency and revenue, with CapEx aimed at optimizing tech stack costs [78][80] Question: OpenPath economics and CPM pressures - Management clarified that OpenPath does not significantly change publisher revenue, and CPMs dropped due to reduced demand in Q4, with a rebound seen in early 2025 [94][96] Question: CTV business mix and future contributions - Management expects a stable mix in CTV revenue, with potential shifts as more publishers rely on Magnite for demand [128][130]

划重点 ② AXON 2.0 的推出是 AppLovin 发展史上的重要里程碑。这个 AI 驱动的广告引擎，通过整合 来自广告网络、游戏用户和 MAX 平台的海量数据，实现了前所未有的广告投放精准度。它不 仅提升了广告效率，也为 AppLovin 打造了难以复制的技术壁垒。 ③ RockFlow 投研团队看好 AppLovin 对市场边界的突破。它没有局限于百亿美元规模的游戏广 告市场，而是着眼于整个数字广告领域，将目标市场扩大到千亿美元。这为 AppLovin 打开了更 广阔的增长空间，也让投资者看到了远超预期的发展潜力。 RockFlow 本文共4153字， 阅读需约15分钟 有这样一家公司，2021 年上市，前半年股价表现不错，但此后一年多持续遭遇重挫、大跌超过 90%。随后却绝地翻盘，股价自最低点两年 飙涨超过 3300%，仅 2024 一年就大涨超过 7 倍，市值轻松突破千亿美元大关。 这家公司叫 AppLovin，主营广告营销，也是当下备受追捧的 AI 明星股。它如何在逆境中绝地求生？又是怎么在谷歌、Meta 两巨头之外， 迅速成长为广告营销市场的重要一极？它的业务演变进程对当下互联网公司有何启发 ...