NEW YORK, March 06, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against The Trade Desk, Inc. (NASDAQ: TTD) and certain of the Company’s senior executives for potential violations of the federal securities laws. If you invested in Trade Desk, you are encouraged to obtain additional information by visiting https://www.bfalaw.com/cases-investigations/the-trade-desk-inc. Investors have until April 21, 2025, to ask the Court to be appoin ...

SAN DIEGO, March 5, 2025 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP announces that purchasers of The Trade Desk, Inc. (NASDAQ: TTD) Class A common stock between May 9, 2024 and February 12, 2025, all dates inclusive (the "Class Period"), have until April 21, 2025 to seek appointment as lead plaintiff of the Trade Desk class action lawsuit.  Captioned United Union of Roofers, Waterproofers & Allied Workers Local Union No. 8 WBPA Fund v. The Trade Desk, Inc., No. 25-cv-01396 (C.D. Cal.), the Trade Desk ...

Core Viewpoint - A class action lawsuit has been filed against The Trade Desk, Inc. for allegedly misleading investors about its business prospects during a specific period, particularly regarding the rollout of its new platform, Kokai [1][2]. Group 1: Allegations and Challenges - The lawsuit claims that The Trade Desk failed to disclose significant execution challenges related to the Kokai rollout, which included difficulties in transitioning clients from the older platform, Solimar [2]. - These execution challenges reportedly delayed the Kokai rollout and negatively impacted the company's business operations and revenue growth [2]. - The positive statements made by the company regarding its business and prospects were deemed materially false and misleading due to these undisclosed challenges [2]. Group 2: Financial Performance - On February 12, 2025, The Trade Desk reported fourth quarter revenue of $741 million, which was below its guidance of $756 million and analysts' estimates of $759.8 million [3]. - The company's revenue guidance for the first quarter of 2025 was at least $575 million, missing analysts' expectations of $581.5 million [3]. - Following the announcement of these results and the acknowledgment of the slower Kokai rollout, the stock price dropped by $40.31, or over 32%, from $122.23 to $81.92 per share [3].

Core Viewpoint - A lawsuit has been filed against The Trade Desk, Inc. and its senior executives for potential violations of federal securities laws, alleging misleading statements regarding the performance of its new platform, Kokai [1][2][3]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Central District of California, with claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Trade Desk common stock [2]. - Investors have until April 21, 2025, to request to be appointed to lead the case [2]. Group 2: Company Performance and Allegations - Trade Desk is accused of stating it was experiencing "massive benefits" from the launch of its Kokai platform, while in reality, it faced execution challenges that delayed the rollout and negatively impacted business operations and revenue growth [3]. - On February 12, 2025, Trade Desk reported disappointing fourth-quarter 2024 revenue of $741 million, which was below its guidance of "at least" $756 million, leading to a stock price decline of over 30% on February 13, 2025 [4].

When a proven, top-performing company sees its stock fall by a large amount, it could be an opportunity. After all, Warren Buffett once said, "The best thing that happens to us is when a great company gets into temporary trouble. [...] We want to buy them when they're on the operating table."In that light, The Trade Desk (TTD -4.48%) may offer such as opportunity today. The company missed expectations for the first time in its eight years as a public company on its Q4 2024 earnings report. Having grown accu ...

Financial Data and Key Metrics Changes - Inuvo reported a record-breaking fourth quarter for 2024, achieving $26.2 million in revenue, a 26% increase year-over-year from $20.8 million in Q4 2023 [8][27] - For the full year 2024, revenue increased by approximately 13.4%, reaching around $84 million [9][36] - Net income for Q4 2024 was $141,000, compared to a net loss of $2.4 million in Q4 2023 [35] - Adjusted EBITDA improved to $1.2 million in Q4 2024 from a loss of $1.2 million in the prior year, marking a $2.4 million improvement [35][36] - Gross profit for Q4 2024 was $21.8 million, a 20% increase from $18.2 million in the same quarter last year [30] Business Line Data and Key Metrics Changes - Platform revenue was approximately $21 million in Q4 2024, driven by strong demand and new product launches [27][28] - Revenue from agencies and brands was about $5 million in Q4 2024, supported by the signing of 33 new clients during the year [29] - The company delivered roughly 89 million ad clicks for platform clients in 2024, a 60% increase year-over-year [14] Market Data and Key Metrics Changes - The market served by Inuvo is undergoing significant shifts, with a focus on richer, more engaging experiences for users and advertisers [10][11] - The largest industries served included travel, e-commerce, automotive, and business and software tools [14] Company Strategy and Development Direction - Inuvo's strategy focuses on enhancing proprietary technologies, particularly in generative AI with the IntentKey, to drive growth [8][9] - The company aims to expand its market share by leveraging its expertise in behavior analytics and artificial intelligence [13][15] - A goal is to achieve a more balanced revenue mix between agencies/brands and platform clients, targeting a 50-50 split in the future [81] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, projecting a 40% year-over-year revenue growth for Q1 2025 [40] - The company anticipates continued strength in its business model, with expectations of cash generation in the second half of 2025 [36][75] Other Important Information - Inuvo secured a $10 million asset-based working capital line of credit in July 2024, with no debt outstanding as of December 31, 2024 [35] - The company streamlined operations by reducing headcount and reorganizing client-facing personnel into dedicated teams [33][18] Q&A Session Summary Question: Outlook for large retailer and car manufacturer - Management confirmed that both clients showed year-over-year growth in Q4 2024, with expectations for continued growth in 2025 [45] Question: Business development and new brands - Management noted the signing of 33 new brands in 2024 and emphasized the professionalization of the go-to-market organization [54] Question: Seasonality of revenue - Management acknowledged that seasonality will continue, but it may not be as steep as in previous years [62] Question: Confidence entering 2025 - Management expressed strong confidence entering 2025, citing improved financial metrics and a focus on overcoming technological costs [66] Question: Self-serve platform momentum - Management reported traction with the self-serve platform, which is designed for both agencies and brands [84] Question: Operating expenses outlook - Management indicated that operating expenses will increase due to hiring additional staff, including engineers and support personnel [88]

Financial Data and Key Metrics Changes - Total revenue for 2024 grew by 15% year-over-year to $657 million, driven by double-digit growth across all three revenue lines [6][49] - Adjusted EBITDA margin was 33%, with $160 million in net cash from operating activities, up 33% from the previous year [10][56] - Q4 2024 total revenue was $191 million, an 11% increase, with activation revenue growing by 10%, measurement by 7%, and supply side by 34% [46][49] - Net income for 2024 was $56 million, representing a 9% margin, down from a 12% margin in 2023 due to slower revenue growth and higher stock-based compensation [58] Business Line Data and Key Metrics Changes - Activation revenue grew by 13% for the full year, while measurement revenue also increased by 15% [49] - Supply side revenue grew by 25% year-over-year, driven by demand from retail media platforms [9][49] - Social measurement revenue grew by 27% for the full year, although growth slowed to 9% in Q4 due to reduced spending from large advertisers [49][51] Market Data and Key Metrics Changes - The company measured 8.3 trillion billable media transactions, a 19% increase year-over-year [7][51] - Social media measurement revenue accounted for 48% of total measurement revenue in 2024, up from 43% in 2023 [51] - CTV measurement impression volumes grew by 66% for the full year and 95% in Q4 alone, increasing its share of total measurement impression volume to 11% [37][38] Company Strategy and Development Direction - The company aims to unify media quality, optimization, and performance measurement into a single platform to maximize ad effectiveness [17] - Strategic acquisitions, including Rockerbox and Scibids, are intended to enhance performance measurement and optimization capabilities [19][62] - The company is focusing on expanding its social media measurement and activation solutions, with a goal to capture a larger share of the digital ad spend [26][31] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q4 due to reduced ad spending from large customers and a shift in ad dollars to proprietary platforms [11][12] - Despite these challenges, management expressed confidence in long-term growth prospects, citing strategic investments and a strong customer base [16][42] - The company anticipates 2025 to be a transition year, with expected revenue growth of approximately 10% and adjusted EBITDA margins of 32% [63][66] Other Important Information - The company ended 2024 with $311 million in cash and short-term investments, with zero long-term debt [61] - The acquisition of Rockerbox is expected to contribute approximately $8 million to total revenue in 2025 [62] - The company repurchased 6.8 million shares for $128 million in 2024, with an additional $200 million authorized for share repurchases in 2025 [59][60] Q&A Session Summary Question: Can you elaborate on the strategic rationale for the Rockerbox acquisition? - The acquisition is aimed at enhancing the customer value proposition by integrating performance measurement with existing solutions, creating a competitive differentiator [71][74] Question: How do you see the ramp-up of new products like Scibids and social solutions throughout 2025? - Management expects headwinds to be confined to 2025, with significant long-term opportunities from new product launches and upselling existing clients [80][82] Question: What is the company's view on the impact of AI on the advertising ecosystem? - The company is heavily investing in AI to enhance its core value proposition and improve operational efficiency [88][90] Question: Can you provide insights on the advertiser that impacted Q4 results? - The reduction in spend was specific to a CPG customer facing rising commodity costs, and management does not expect similar impacts from other clients in the same vertical [113][115]

Core Insights - Magnite reported a total revenue of $194.0 million for Q4 2024, reflecting a 4% increase from Q4 2023 [5] - Contribution ex-TAC for Q4 2024 was $180.2 million, up 9% year-over-year, with CTV contribution growing 23% to $77.9 million [5][6] - Adjusted EBITDA for Q4 2024 was $76.5 million, representing a 42% margin, compared to 43% in Q4 2023 [5][6] Financial Performance - Revenue for the full year 2024 reached $668.2 million, an 8% increase from $619.7 million in 2023 [6] - Net income for Q4 2024 was $36.4 million, or $0.24 per diluted share, compared to $30.9 million, or $0.16 per diluted share in Q4 2023 [5][6] - Adjusted EBITDA for the full year 2024 was $196.9 million, a 15% increase from $171.4 million in 2023 [5][6] Future Outlook - The company expects total Contribution ex-TAC for Q1 2025 to be between $140 million and $144 million, with CTV contribution projected between $61 million and $63 million [5] - For the full year 2025, Magnite anticipates Contribution ex-TAC growth above 10%, with mid-teens growth excluding political factors [5] - Adjusted EBITDA margin is expected to expand by at least 100 basis points in 2025, with mid-teens percentage growth in Adjusted EBITDA and high-teens to 20% growth in free cash flow [5]

Financial Data and Key Metrics Changes - In 2024, the company achieved ex TAC gross profit of $667 million, representing a 25% growth year-over-year, and adjusted EBITDA of $201 million, more than doubling the previous year's results [9][30] - Free cash flow for 2024 reached $149 million, exceeding the original target of $100 million by 49% and growing nearly three times compared to the prior year [9][31] - The company ended 2024 with a net cash balance of $103.9 million, with cash and cash equivalents totaling $226.6 million, surpassing long-term loan obligations of $122.7 million [33] Business Line Data and Key Metrics Changes - The enterprise advertising business saw strong growth, contributing to the overall revenue increase, particularly with the onboarding of Yahoo [30] - Excluding the impact of the Yahoo deal, the company estimates it grew over 10% on an ex TAC gross profit basis in 2024 [30] Market Data and Key Metrics Changes - The company reaches 600 million people daily, providing real-time insights into consumer behavior, which is a competitive advantage [8] - The advertising landscape is shifting, with many advertisers preferring standard display ads over native advertising, which has been identified as a limitation for growth [12][14] Company Strategy and Development Direction - The company is expanding beyond native advertising to capture the full performance advertising market, which is estimated to be a $55 billion opportunity [16] - The new advertising platform, Realize, aims to drive performance outcomes across various formats and placements, moving away from a sole focus on native advertising [20][21] - The company plans to leverage its first-party data and AI to enhance its offerings and meet the evolving needs of advertisers [24][55] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that the projected single-digit growth for 2025 is below historical rates and long-term ambitions, but emphasizes the importance of laying groundwork for future growth [11][36] - The company is optimistic about the potential of Realize to unlock demand and drive growth, despite current challenges in the native advertising market [69][70] Other Important Information - The company has approved an additional $200 million for its share repurchase program, bringing the total authorization to approximately $240 million [33] - The introduction of new metrics, such as scaled advertisers and average revenue per scaled advertiser, will help track progress in driving advertiser demand [37] Q&A Session Summary Question: Amazon's new strategy to pay media companies for traffic - Management views Amazon's strategy as an opportunity for growth in social commerce and believes that retailers will continue to seek ways to diversify their reach [40][42] Question: Concerns about being limited to mobile devices and CTV growth - Management believes there is a significant opportunity in performance advertising outside of traditional channels and aims to fill the gap left by competitors in the performance space [44][46] Question: Details on the Realize platform and its impact on demand - The Realize platform will provide advertisers with more options and ease of use, allowing them to upload existing creatives and access a wider range of ad placements [55][56] Question: Clarification on Yahoo's performance and future growth expectations - Management acknowledges that while the Yahoo deal has provided valuable supply, the expected growth from Yahoo's advertisers has not materialized as anticipated [66][68] Question: Competition with established DSPs like Trade Desk and Amazon - Management believes that the company can differentiate itself by focusing on performance advertising and capturing budgets from social platforms experiencing diminishing returns [73][75]

Financial Data and Key Metrics Changes - Total revenue increased by 44% year-over-year to $1,370 million, with adjusted EBITDA rising by 78% to $848 million, achieving a 62% adjusted EBITDA margin [14][18] - Free cash flow grew by 105% year-over-year to $695 million, with a quarter-over-quarter increase of 28%, representing an 82% flow-through from adjusted EBITDA to free cash flow [14][15] - The company ended the quarter with $741 million in cash and cash equivalents [15] Business Line Data and Key Metrics Changes - The advertising business generated $999 million in revenue with an adjusted EBITDA of $777 million, achieving a 78% margin [15] - Apps revenue for the quarter was $373 million, a 1% decrease from the previous year, with adjusted EBITDA of $71 million, representing a 19% margin [18] Market Data and Key Metrics Changes - The company is expanding its focus beyond gaming to serve the entire global advertising economy, with a significant opportunity to attract over 10 million businesses worldwide that advertise online [8][9] - The advertising platform is expected to drive incremental demand by enabling product discovery while users engage with mobile games [9] Company Strategy and Development Direction - The company is transitioning to a pure advertising platform, emphasizing productivity, automation, and building lean teams [12] - An exclusive term sheet has been signed to sell the apps business, allowing the company to focus on its advertising strategy [11][16] - The company aims to develop automated tools to facilitate onboarding for a larger number of advertisers [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the platform's potential to transform global marketing and highlighted the importance of operational excellence [12] - The company anticipates continued growth in the advertising business, with expectations for e-commerce to contribute materially in 2025 [37][38] - Management noted that the advertising models are continuously improving, which is expected to drive revenue growth [40] Other Important Information - The company reported an adjusted EBITDA per employee of approximately $3 million in the advertising business, with expectations for this metric to rise as processes are refined [12] - The company is focused on maintaining its cultural values while scaling operations and developing tools for automation [23] Q&A Session Summary Question: Early benefits for a range of different brands in various verticals - Management confirmed that the platform is seeing success across multiple categories, indicating confidence in scaling beyond direct-to-consumer marketers [22][23] Question: Model enhancements and growth factors - Management highlighted ongoing learning and seasonal advantages as key contributors to growth, with expectations for continued improvement in models [32][35] Question: E-commerce contribution in 2025 - Management remains confident in e-commerce contributing materially to revenue in 2025, though the timing and amount of growth are difficult to predict [37][38] Question: Pilot program for e-commerce advertisers - Management indicated that the pilot program is limited in scale, with a small team managing onboarding, but sees potential for significant growth as self-service tools are developed [46][49] Question: Competitive response to e-commerce rollout - Management noted that the platform is driving incremental sales for advertisers, expanding the overall market rather than taking dollars from competitors [54][56] Question: Go-to-market strategy for e-commerce - Management is focused on mid-market B2C companies for the pilot, with a strong demand for onboarding as positive results are reported [60][62] Question: Inventory conversion for e-commerce vs gaming - Management stated that the same inventory is used for both e-commerce and gaming, with full-screen video ads being effective across categories [68] Question: Take rate dynamics between gaming and e-commerce - Management explained that as monetization improves, the take rate naturally increases, but they do not optimize for it [75] Question: Self-service rollout for Audience Plus - Management indicated that self-service will be launched when ready, focusing on automation and fraud prevention [116][117]