The Trade Desk (TTD) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 27% year-over-year to $628 million, with net income up 139% to $94 million and strong profitability, driven by CTV, retail media, and international expansion.

• Customer retention remained above 95% for the tenth consecutive year, and multi-year joint business plans now represent over 40% of business.

• Growth was fueled by higher gross spend from new and existing clients, more campaigns, and higher spend per campaign.

• Continued investment in AI-driven platform upgrades, omnichannel ad inventory, and global expansion, especially in Europe and Asia.

• Positioned for durable growth in 2025 and beyond, supported by innovation in AI, retail media, and international markets.

Financial highlights

• Q3 2024 revenue: $628 million (up 27% year-over-year); net income: $94 million (up 139%); adjusted EBITDA: $257 million (41% margin); free cash flow: $222 million.

• Non-GAAP net income: $207 million; non-GAAP diluted EPS: $0.41.

• Cash, cash equivalents, and short-term investments totaled $1.73 billion at quarter-end, with no debt.

• Operating income for Q3 2024: $108 million (up from $38 million in Q3 2023).

• Working capital at September 30, 2024: $2.2 billion.

Outlook and guidance

• Q4 2024 revenue is estimated at least $756 million, with adjusted EBITDA projected at approximately $363 million.

• CapEx expected to remain around 5% of revenue for 2024 and 2025.

• Management anticipates ongoing investments in international markets and product development, which may impact near-term profitability but support long-term growth.

• Macroeconomic uncertainty, including currency fluctuations and geopolitical developments, may impact future results.