Core Insights - The Trade Desk, Inc. has launched OpenAds, a new auction environment aimed at providing publishers and sellers with a transparent and high-integrity alternative for programmatic advertising, supported by major publishing partners [1][9] Group 1: OpenAds Initiative - OpenAds is designed to enhance transparency, visibility, and signal in programmatic advertising, addressing advertiser concerns by delivering a cleaner auction framework [2] - The initiative reflects a shift towards cleaner auction mechanics, enabling advertisers to better understand their purchases and audience reach [3] - Key elements of OpenAds will be open-sourced, allowing for industry review and participation from other buyers and DSPs [4] Group 2: Complementary Tools - OpenAds complements Trade Desk's existing initiatives like OpenPath and PubDesk, which aim to improve efficiency and trust between buyers and sellers [5] - These tools are focused on aligning incentives around quality rather than volume, enhancing the overall media supply chain dynamics [5] Group 3: Future Development - The company anticipates that OpenAds will continue to develop actively and expand through 2026, with plans for additional publisher integrations [6] - Management believes that a healthier auction environment will improve outcomes for both advertisers and publishers, reinforcing the competitiveness of the open Internet [6] Group 4: Competitive Landscape - Amazon's advertising business is rapidly expanding, leveraging consumer data and partnerships to enhance its advertising reach, including collaborations with platforms like Netflix and Spotify [7] - PubMatic has launched AgenticOS, an AI-powered system for programmatic advertising, and is focusing on diversifying its DSP mix to reduce reliance on legacy buyers [8][10]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $739 million, representing an 18% year-over-year growth, and a 22% growth when excluding political spend from the previous year [39] - Adjusted EBITDA for the quarter was approximately $317 million, or about 43% of revenue [39] - Adjusted net income for Q3 was $221 million, or $0.45 per diluted share [41] - Free cash flow for Q3 was $155 million, with a strong cash and liquidity position of about $1.4 billion in cash and short-term investments at the end of the quarter [42] Business Line Data and Key Metrics Changes - CTV (Connected TV) continues to be the largest and fastest-growing channel, representing around 50% of the business in Q3 [39] - Mobile accounted for a low 30% share, display for a low double-digit share, and audio for around 5% [39] - The company is seeing strong growth in retail media and significant adoption across various verticals [5] Market Data and Key Metrics Changes - North America represented 87% of the business, while international markets accounted for about 13% [40] - Growth in international markets, particularly EMEA and APAC, is outpacing growth in North America [40] - Strong growth was noted in verticals such as medical health, automotive, and technology [40] Company Strategy and Development Direction - The company is focused on leading the open internet and enhancing operational efficiency through new leadership and structural changes [31][63] - Investments are being made in AI and product innovations to drive growth and improve client performance [38][39] - The company aims to capture a larger share of the $1 trillion advertising TAM as more dollars shift to programmatic [36] Management's Comments on Operating Environment and Future Outlook - The management describes the current macro environment as a "tale of two cities," with some brands facing pressure from tariffs and inflation, while others are experiencing strong momentum [72] - The company is optimistic about the potential of the open internet and believes that independent DSPs will capture the majority of open internet spend [28] - The focus remains on building a more accountable and metrics-driven culture to support long-term growth [66] Other Important Information - The company has repurchased nearly $2 billion through its share repurchase program since the first authorization in 2023 [42] - New product features and upgrades are expected to significantly contribute to growth in the coming years [27] Q&A Session Summary Question: Clarification on Amazon as a competitor and the evolving competitive environment - Management acknowledges Amazon and Google as significant players but emphasizes that their focus is primarily on owned and operated inventory, while The Trade Desk focuses on decisioned, data-driven buying across the open internet [49][51] Question: Areas for impact in the next couple of years - The CFO highlights the importance of disciplined resource allocation and a metrics-driven approach to drive growth and ROI [54][55] Question: Broader advertising and macro environment trends for 2026 - Management notes strong momentum across the business but acknowledges pressures in certain sectors due to external factors like tariffs and inflation [72]

Financial Data and Key Metrics Changes - The Trade Desk reported Q3 2025 revenue of $739 million, representing an 18% year-over-year growth. Excluding political spend from last year's Q3, revenue increased by approximately 22% [38][42] - Adjusted EBITDA for Q3 was approximately $317 million, or about 43% of revenue [38] - Adjusted net income for the quarter was $221 million, or $0.45 per diluted share [41] - Free cash flow was $155 million in Q3, with a strong cash and liquidity position of about $1.4 billion at the end of the quarter [42] Business Line Data and Key Metrics Changes - Connected TV (CTV) remains the largest and fastest-growing channel, with video (including CTV) representing around 50% of the business in Q3 [38] - Mobile accounted for a low 30% share, while display represented a low double-digit share, and audio was around 5% [38] - The Trade Desk's focus on retail media is seeing strong adoption across verticals, contributing to overall growth [5] Market Data and Key Metrics Changes - North America represented 87% of the business in Q3, while international markets accounted for about 13% [39] - Growth in international markets, particularly EMEA and APAC, is outpacing growth in North America [39] - Strong growth was noted in verticals such as medical health, automotive, and technology [40] Company Strategy and Development Direction - The company is focused on leading the open internet and enhancing operational efficiency through new leadership and structural changes [31][36] - The Trade Desk is investing in AI and automation to improve platform capabilities and drive productivity [18][63] - The company aims to capture a larger share of the $1 trillion advertising total addressable market (TAM) as more dollars shift to programmatic [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of the open internet and the advantages of an objective platform [28] - The company anticipates continued growth driven by innovations in AI and programmatic buying, particularly in CTV and retail media [43] - The Trade Desk is well-positioned to capitalize on the evolving advertising landscape, with a focus on operational rigor and long-term growth [43] Other Important Information - The company has repurchased nearly $2 billion through its share repurchase program since the first authorization in 2023 [42] - The board of directors approved a new authorization of $500 million for share repurchases [42] Q&A Session Summary Question: Clarification on Amazon as a competitor and the evolving competitive environment - Jeff Green acknowledged Amazon and Google as significant players but emphasized that their advertising efforts primarily focus on owned and operated inventory, with little competition in the open internet space [47][51] Question: Areas for impact in the organization - Jeff Green highlighted the importance of new leadership and structural changes aimed at strengthening the company's foundation and improving operational efficiency [59][61] Question: Trends in the advertising and macro environment for 2026 - Management noted the growing importance of the open internet and the potential for increased value in an objective platform, with a focus on disciplined resource allocation and international growth [69]

Financial Data and Key Metrics Changes - The Trade Desk reported Q3 2025 revenue of $739 million, representing an 18% year-over-year growth, and a 22% growth when excluding political spend from the previous year [40][41] - Adjusted EBITDA for Q3 was approximately $317 million, or about 43% of revenue [40] - Adjusted net income for the quarter was $221 million, or $0.45 per diluted share [42] - Free cash flow was $155 million in Q3, with a strong cash and liquidity position of about $1.4 billion at the end of the quarter [43] Business Line Data and Key Metrics Changes - Connected TV (CTV) remains the largest and fastest-growing channel, representing around 50% of the business in Q3 [40] - Mobile accounted for a low 30% share, display for a low double-digit share, and audio for around 5% [40] - The Trade Desk's focus on retail media is seeing rapid scaling and strong adoption across various verticals [5] Market Data and Key Metrics Changes - North America represented 87% of the business, while international markets accounted for about 13% [41] - Growth in international markets, particularly EMEA and APAC, is outpacing growth in North America [41] - Strong growth was noted in verticals such as medical health, automotive, and technology [41] Company Strategy and Development Direction - The company is focused on leading the open internet and enhancing operational efficiency through new leadership and structural changes [33][57] - Investments in AI and automation are aimed at improving campaign performance and operational productivity [19][58] - The Trade Desk is committed to building a more data-driven culture and enhancing client relationships through joint business plans (JBPs) [15][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the potential of the open internet and the shift towards programmatic advertising [30] - The company anticipates continued growth in CTV and audio channels, driven by premium content and authenticated audiences [40][41] - The Trade Desk expects Q4 revenue to be at least $840 million, with an estimated growth of approximately 18.5% year-over-year when excluding political ad spend [44] Other Important Information - The company has repurchased nearly $2 billion in stock since the beginning of its repurchase program, effectively offsetting dilution [43] - The introduction of new products and upgrades, such as Audience Unlimited and trading modes, is expected to drive future growth [28][29] Q&A Session Summary Question: Clarification on Amazon as a competitor - Management clarified that while Amazon is a significant player in advertising, their focus is primarily on owned and operated inventory, which differs from The Trade Desk's emphasis on the open internet [46][49] Question: Areas for impact as new CFO - The new CFO highlighted the importance of disciplined resource allocation and a metrics-driven approach to drive growth and efficiency [52][53] Question: Broader advertising trends for 2026 - Management noted that the open internet is gaining importance, and the company is well-positioned to capitalize on this trend through its restructuring efforts [62]