The Trade Desk Sees Revenue Soar Despite Q4 Shortfalls

VENTURA, California — The Trade Desk (NASDAQ: TTD) reported strong financial results for the fourth quarter and fiscal year 2024, showcasing impressive growth in revenue and customer retention despite falling short of internal expectations for Q4. The company achieved $2.4 billion in total revenue for the year, marking a year-over-year increase of 26%.

In the fourth quarter specifically, The Trade Desk recorded $741 million in revenue, representing a 22% growth from the same period last year. The company also reported a net income of $182 million, which translates to a net income margin of 25%. Adjusted EBITDA reached $350 million, reflecting a robust 47% margin.

“The Trade Desk once again outpaced nearly every segment of digital advertising in 2024,” said Jeff Green, founder and CEO of The Trade Desk. “Our platform processed a record $12 billion of spend, showcasing significant market share gains in the digital advertising space.”

Cloud video advertising was among the company’s strongest growth segments as clients increasingly transition towards premium channels. Despite exceeding total revenue expectations, The Trade Desk acknowledged it fell short of internal revenue targets for the fourth quarter.

For the first quarter of 2025, The Trade Desk anticipates revenue of at least $575 million and adjusted EBITDA of approximately $145 million. “While we are proud of these accomplishments, we are disappointed that we fell short of our own expectations in the fourth quarter,” Green added.

The company is set on long-term growth strategies, particularly with its acquisition of Sincera, which aims to enhance data capabilities and provide advertisers with improved valuation metrics. The launch of its new streaming TV operating system, Ventura, signifies an important step into the connected TV market, addressing existing inefficiencies.

The Trade Desk also implemented a share repurchase program and announced additional authorization of $564 million, raising its total buyback capacity to $1 billion. In 2024 alone, the company spent approximately $235 million in stock repurchases at an average share price of $93.97.

Key Performance Indicators:

• **Revenue**: $2.4 billion for FY 2024, $741 million for Q4 2024
• **Net Income**: $182 million for Q4 2024
• **Customer Retention Rate**: Over 95% for the eleventh consecutive year
• **Adjusted EBITDA**: $350 million, 47% margin for Q4 2024

The Trade Desk continues to navigate the evolving digital landscape with confidence, emphasizing its commitment to innovation and strong shareholder returns as it looks to maintain momentum into 2025.