NASDAQ$TTD

Trade Desk Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

The Trade Desk's Q4 2019 financial results were announced, marking a record spend quarter and significant revenue growth.

The Trade Desk reported a record Q4 with spend topping $1 billion, contributing to a 39% revenue increase for the year. The company generated $108.3 million in net income and $213.9 million in adjusted EBITDA for the full year 2019.

  • Q4 spend topped $1 billion, a first for the company.
  • Full year 2019 revenue grew by 39% to $661 million.
  • Customer retention remained above 95% for the past 24 quarters.
  • The company officially launched a programmatic ad buying platform in China in March 2019.

Headline financials

Total Revenue

$216M

Previous: $160M+34.6%
EPS (adj)

$0.15

Previous: $0.11+36.4%
Capital Expenditures

$14M

Previous: $9.41M+49.1%
Free Cash Flow

-$42.1M

Previous: $38.6M-208.9%
Net Income

$50.9M

Previous: $39.4M+29.2%
Operating Income

$52.7M

Previous: $49M+7.5%
Gross Profit

$169M

Previous: $125M+34.7%
Cash & Equivalents

$131M

Previous: $207M-36.8%
Total Assets

$1.73B

Previous: $1.12B+54.6%
Stock-Based Comp

$24.4M

Previous: $14.3M+71.1%

Revenue & EPS history

Trade Desk · Revenue · Quarterly

$216M

Q4 2019+34.6%vs Q4 2018
Beat estimate in 15 of 15 quarters(100%)
ActualEstimate

Forward guidance

The Trade Desk anticipates continued momentum into 2020, expecting gross spend on the platform to accelerate year over year to at least $4.24 billion and revenue to be at least $863 million. Adjusted EBITDA is expected to be $259 million, or 30% of revenue.

Tailwinds

  • Gross spend on the platform to accelerate year over year to at least $4.24 billion.
  • Revenue to be at least $863 million.
  • Adjusted EBITDA to be $259 million, or 30% of revenue.
  • Focus on grabbing market share.
  • Deepening engagement and strategic importance with customers.

Headwinds

  • Variability and complexity with respect to the charges excluded from these non-GAAP measures.
  • Measures and effects of stock-based compensation expense that are directly impacted by unpredictable fluctuations in share price.
  • Variability of the above charges could have a significant and potentially unpredictable impact on future U.S. GAAP financial results.
  • No outlook for GAAP Net income.
  • No reconciliation of adjusted EBITDA guidance to net income.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

+7.6%

Avg return

Earnings day

+7.0%

Avg return

5 days after

+8.9%

Avg return

30 days after

69%

29 / 42 earnings

Positive

+46.8%

Q1 2018

Best reaction

-33.0%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-17.0%-12.2%-16.9%
Q4 2025+12.0%-0.6%-15.4%
Q3 2025-3.2%-4.6%-12.7%
Q1 2025+18.7%+32.1%+19.3%
Q4 2024-33.0%-34.5%-55.9%
Q3 2024+0.3%+5.1%+11.5%
Q2 2024+16.9%+15.8%+18.1%
Q1 2024-1.1%-2.4%+5.1%
Q4 2023+19.7%+11.1%+3.2%
Q3 2023-18.8%-14.2%-10.4%
Q2 2023-9.6%-11.8%-1.7%
Q1 2023+0.6%-0.2%+16.3%
Q4 2022+26.3%+20.8%+17.2%
Q3 2022+9.5%+10.1%+10.2%
Q2 2022+35.1%+35.5%+17.1%
Q1 2022-3.7%+15.4%+16.7%
Q4 2021-1.4%-3.1%-14.5%
Q3 2021+41.6%+46.4%+42.8%
Q2 2021+4.2%-3.7%-14.0%
Q1 2021-22.2%-21.8%-11.5%
Q4 2020+7.0%-6.3%-13.2%
Q3 2020+29.6%+11.8%+42.9%
Q2 2020-0.6%-10.1%-11.0%
Q1 2020+1.1%-0.5%+13.5%
Q4 2019+7.6%+4.0%-25.2%
Q3 2019+0.6%+15.1%+27.2%
Q2 2019+5.7%+2.9%-9.4%
Q1 2019-17.4%-16.6%+10.3%
Q4 2018+31.7%+30.3%+35.2%
Q3 2018-7.1%-15.0%+1.3%
Q2 2018+39.9%+45.6%+55.4%
Q1 2018+46.8%+55.7%+72.0%
Q4 2017+20.3%+11.5%+7.1%
Q3 2017-17.3%-23.7%-26.6%
Q2 2017+0.9%-5.5%+4.1%
Q1 2016+29.4%+30.3%+28.2%
Q1 2017+29.4%+30.3%+28.2%
Q2 2016+2.2%+10.5%+24.8%
Q4 2016+2.2%+10.5%+24.8%
Q3 2016+10.9%+10.0%+19.7%
Q4 2015+10.9%+10.0%+19.7%
Q3 2015+10.9%+10.0%+19.7%
Q2 2015
Q1 2015

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