The Trade Desk, Inc. (NASDAQ: TTD), a provider of a global technology platform for buyers of advertising, today announced financial results for its first quarter ended March 31, 2022.
“We delivered outstanding performance in the first quarter, growing 43% versus a year ago, representing our strongest first quarter revenue growth in the last four years. This performance is testament to the value that marketers are increasingly placing on data-driven advertising on the open internet,” said Jeff Green, Co-founder and CEO of The Trade Desk. “We continue to innovate in ways that help marketers succeed, whether it’s launching the world’s most advanced data marketplace that helps advertisers value and price data accurately and use more of it, or our OpenPath solution, which provides advertisers with a more direct path to premium publisher inventory. With this innovation focus, along with strong growth across all channels, led by CTV, we are reinforcing our position as the default demand side platform for the open internet.”
First Quarter 2022 Financial Highlights:
The following table summarizes our consolidated financial results for the quarters ended March 31, 2022 and 2021 ($ in millions, except per share amounts):
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Three Months Ended |
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March 31, |
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2022 |
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2021 |
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GAAP Results |
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|
|
|
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|
Revenue |
$ |
315 |
|
$ |
220 |
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Increase in revenue year over year |
|
43 |
% |
|
37 |
% |
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Net income (loss) |
$ |
(15 |
) |
$ |
23 |
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GAAP diluted earnings (loss) per share |
$ |
(0.03 |
) |
$ |
0.05 |
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|
|
|
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|
|
|
||
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Non-GAAP Results |
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|
|
|
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Adjusted EBITDA |
$ |
121 |
|
$ |
71 |
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Adjusted EBITDA margin |
|
38 |
% |
|
32 |
% |
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|
Non-GAAP net income |
$ |
105 |
|
$ |
70 |
|
||
|
Non-GAAP diluted earnings per share |
$ |
0.21 |
|
$ |
0.14 |
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First Quarter and Recent Business Highlights:
- Strong Customer Retention: Customer retention remained over 95% during the first quarter, as it has for the past eight consecutive years.
- Continued Collaboration and Support for Unified ID 2.0: The Trade Desk is building support for Unified ID 2.0, an industry-wide approach to identity that preserves the value of relevant advertising, while putting user control and privacy at the forefront. The ID is an upgrade and alternative to third-party cookies. Recent partnerships and pledges of support include:
- Collaboration with LiveRamp to create European Unified ID (EUID), a new privacy-first, interoperable solution for the European Advertising Market.
- Partnership with AppLovin, marking the first mobile-native in-app exchange to enable Unified ID 2.0 signals for mobile publishers.
- Expanded Partnerships:
- In March, The Trade Desk announced a new integration with Adobe Real-Time CDP, a leading customer data platform. As marketers prepare for the deprecation of third-party cookies, the collaboration empowers the activation of first-party data to create more precise digital advertising campaigns.
- In March, The Trade Desk launched a new certified service partner program for small and medium-sized businesses (SMBs). As part of the announcement, Goodway Group became The Trade Desk’s first certified service partner to help meet rising demand from SMBs as they increasingly turn to data-driven advertising to optimize budgets.
- Launched OpenPath: Highlights include:
- Ability for publishers to integrate directly with The Trade Desk, allowing advertisers direct access to their inventory.
- Removes inefficiencies often present in the programmatic supply chain, including those propagated by walled gardens.
- Industry Recognition:
- 2022 Customers’ Choice for Ad Tech on Gartner® Peer Insights™
- 2022 BIG Innovation Award for Technology Product (Solimar)
- 2022 Top Women in Media & Ad Tech
- FORTUNE: Future 50 list
- Gartner Magic Quadrant for Ad Tech: positioned highest for “Completeness of Vision” and recognized for “Ability to Execute”
- FORTUNE: 100 Fastest Growing Companies for 2021
- The Software Report: Top 100 Software Companies of 2021
- Adweek Readers’ Choice: Best of Tech awards for both Demand Side Platform and Innovator of the Year categories
- Forbes: Global 2000 list
- FORTUNE: Best Medium Workplace 2021
Financial Guidance:
Second Quarter 2022 outlook summary:
- Revenue at least $364 million
- Adjusted EBITDA of approximately $121 million
We have not provided an outlook for GAAP Net Income or reconciliation of Adjusted EBITDA guidance to Net Income, the closest corresponding U.S. GAAP measure, because Net Income outlook is not available without unreasonable efforts on a forward-looking basis due to the variability and complexity with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of our stock-based compensation expense that are directly impacted by unpredictable fluctuations in our share price. We expect the variability of the above charges could have a significant and potentially unpredictable impact on our future U.S. GAAP financial results.
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