Key Takeaways TTD's CTV is its fastest-growing channel, with video including CTV making up about half of Q3 revenues.TTD boosts AI platforms like Kokai and expands tools such as OpenPath to widen its moat.Competition is intensifying as MGNI and PubMatic boost their CTV efforts.The Trade Desk’s ((TTD) Connected TV (“CTV”) business is its “largest and fastest-growing channel” and continues to pace faster than the overall business. Video, including CTV, accounted for roughly half of revenues in the third quart ...

Financial Data and Key Metrics Changes - Q3 2025 total revenue was $179 million, an increase of 11% from Q3 2024 [19] - Contribution ex TAC was $167 million, up 12%, exceeding guidance [19] - Adjusted EBITDA grew 13% to $57 million, resulting in a margin of 34% [21][19] - Net income for the quarter was $20 million, compared to $5 million in Q3 2024 [21] - GAAP earnings per diluted share were $0.13, up from $0.04 in Q3 2024 [21] Business Line Data and Key Metrics Changes - CTV contribution ex TAC was $76 million, up 18% year-over-year or 25% excluding political [19][21] - DV+ contribution ex TAC was $91 million, an increase of 7% or 10% excluding political [20][21] - The contribution ex TAC mix for Q3 was 45% CTV, 39% mobile, and 16% desktop [20] Market Data and Key Metrics Changes - Health and fitness, shopping, and technology were the strongest-performing categories, while automotive was one of the weakest [20] - Ad spend from top holding companies grew nearly 20% in Q3 year-over-year [9] Company Strategy and Development Direction - The company is focusing on expanding its CTV business and enhancing its technology offerings, including AI integration [8][15] - Plans to integrate AI assistance and workflows into Clear Line, powered by the acquisition of Streamer.ai [8][15] - The company is optimistic about growth opportunities with major partners like Netflix and Roku [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential from the Google Ad Tech trial, indicating that any market share shift could significantly benefit the company [17][18] - The company anticipates contribution ex TAC growth for 2026 to be at least 11%, with a focus on maintaining margin expansion [27][39] Other Important Information - The company has a cash balance of $482 million at the end of Q3, up from $426 million at the end of Q2 [22] - Capital expenditures for Q4 are expected to be approximately $23 million, with a full-year estimate of $80 million [23][26] Q&A Session Summary Question: Impact of The Trade Desk's changes on Magnite - Management noted that they have worked with major buyers to reconnect Magnite as a preferred supply path and believe the impact has been limited to DV+ [30] Question: Growth of DV+ with Amazon - Management confirmed strong spend from leading DSPs, particularly Amazon, and highlighted the importance of partnerships in driving growth [33] Question: AI integration and its impact - Management discussed the integration of AI technologies and the potential for increased efficiency and monetization through new products [15][36] Question: Google Ad Tech case updates - Management remains optimistic about the outcomes of the case and believes it presents a generational opportunity for the company [39] Question: CTV market dynamics and CPM trends - Management indicated stability in CTV CPMs and does not foresee significant downward pressure on revenues from lower-cost ad units [42] Question: CapEx and employee growth - Management explained that the increase in CapEx is aimed at securing data center space and enhancing technology capabilities, while also planning to add personnel to support growth initiatives [44]