Core Insights - The Trade Desk, Inc. (TTD) launched Kokai in 2023, a next-generation platform utilizing Koa AI to enhance programmatic advertising through advanced analytics and integrations, potentially reshaping TTD's revenue and competitive position [2][4] Group 1: Kokai Platform Features and Adoption - Kokai employs a distributed AI architecture with specialized models for various functions, improving efficiency and reliability in ad performance [3] - Nearly all TTD clients have tested Kokai, with 85% adopting it as their default platform, leading to significant performance improvements: 26% better cost per acquisition, 58% better cost per unique reach, and a 94% higher click-through rate [4][10] - Successful case studies include Specsavers reducing appointment booking costs by 43% and Danone increasing conversion rates by one-third for its Actimel brand [5] Group 2: Market Position and Competitive Landscape - TTD is well-positioned for market share growth in 2026, supported by Kokai's adoption, growth in connected TV (CTV) and retail media, and strong client retention, despite competition from Magnite, Inc. and Taboola.com Inc. [6] - Magnite reported a strong third quarter with 18% CTV growth, driven by its SpringServe ad server, while Taboola's new platform, Realize, enhances performance advertising capabilities across the open web [7][8] Group 3: Financial Performance and Valuation - TTD shares have declined by 71.7% over the past year, contrasting with the 61.6% growth of the Zacks Internet – Services industry [11] - TTD's forward price/earnings ratio stands at 26.86X, lower than the industry average of 29.52X [12] - The Zacks Consensus Estimate for TTD's earnings for 2025 has remained stable over the past 60 days [13]

Core Insights - The Trade Desk launched Kokai in 2023, a next-generation platform that integrates advanced AI, measurement, partner integrations, and user experience for programmatic advertising [1] - Kokai has shown significant performance improvements, with clients like Samsung and Cash Rewards reporting increases in campaign effectiveness [2][11] - The adoption of Kokai is accelerating, with three-quarters of clients using it and full adoption expected by the end of 2025 [3][11] Performance Metrics - Samsung achieved a 43% increase in reaching its target audience for an omnichannel campaign in Europe, while Cash Rewards saw a 73% improvement in cost-per-acquisition for campaigns in Asia [2] - Campaigns on Kokai are showing over a 20-point increase across key performance indicators [2][11] - Clients shifting their spend to Kokai are increasing overall investment in The Trade Desk by more than 20% faster than others [3] Revenue and Growth Projections - The Trade Desk reported a 19% year-over-year revenue growth, driven by Kokai and strength in connected TV [5] - The company forecasts a 14% revenue increase for the third quarter, projecting at least $717 million in revenue [5] Competitive Landscape - Taboola.com Inc. is expanding its performance advertising platform, targeting a $55 billion market with its new offering, Realize [6][7] - Magnite operates as a leading supply-side platform, with significant growth driven by its partnerships and ad server technology [8][9] Valuation and Market Performance - The Trade Desk's shares have declined 49.3% over the past year, contrasting with the S&P 500's rise of 15.2% [12] - The company trades at a forward price-to-sales ratio of 8.02X, higher than the industry average of 5.38X [13]