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“2018 was a huge year for The
Fourth Quarter and Full Year 2018 Financial Highlights:
The following table summarizes our consolidated financial results for
the quarters and fiscal years ended
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
GAAP Results | ||||||||||||||||
Revenue | $ | 160.5 | $ | 102.6 | $ | 477.3 | $ | 308.2 | ||||||||
Increase in revenue year over year | 56 | % | 42 | % | 55 | % | 52 | % | ||||||||
Net Income | $ | 39.4 | $ | 16.8 | $ | 88.1 | $ | 50.8 | ||||||||
Diluted EPS | $ | 0.84 | $ | 0.38 | $ | 1.92 | $ | 1.15 | ||||||||
Non-GAAP Results | ||||||||||||||||
Adjusted EBITDA | $ | 67.1 | $ | 39.5 | $ | 159.4 | $ | 95.4 | ||||||||
Adjusted EBITDA Margin | 42 | % | 38 | % | 33 | % | 31 | % | ||||||||
Non-GAAP Net Income | $ | 51.1 | $ | 24.2 | $ | 123.8 | $ | 70.4 | ||||||||
Non-GAAP Diluted EPS | $ | 1.09 | $ | 0.54 | $ | 2.70 | $ | 1.60 | ||||||||
Fourth Quarter and 2018 Business Highlights Include:
Additionally, throughout 2018, The
Full Year 2019 and First Quarter Outlook:
The
Full Year 2019:
First Quarter 2019
We have not provided 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.
Use of Non-GAAP Financial Information
Included within this press release are the non-GAAP financial measures
of Adjusted EBITDA, Non-GAAP net income and Non-GAAP diluted EPS that
supplement the Consolidated Statements of Operations of The
Fourth Quarter and Fiscal Year 2018 Results Webcast and Conference Call Details
The
About The
The
Forward-Looking Statements
This document contains “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. These
statements relate to expectations concerning matters that (a) are not
historical facts, (b) predict or forecast future events or results, or
(c) embody assumptions that may prove to have been inaccurate, including
statements relating to the industry and market trends, and the Company’s
financial targets such as revenue and Adjusted EBITDA. When words such
as “believe,” “expect,” “anticipate,” “will”, “outlook” or similar
expressions are used, the Company is making forward-looking
statements. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, it cannot
give readers any assurance that such expectations will prove
correct. These forward-looking statements involve risks, uncertainties
and assumptions, including those related to the Company’s limited
operating history, which makes it difficult to evaluate the Company’s
business and prospects, the market for programmatic advertising
developing slower or differently than the Company’s expectations, the
demands and expectations of clients and the ability to attract and
retain clients. The actual results may differ materially from those
anticipated in the forward-looking statements as a result of numerous
factors, many of which are beyond the control of the Company. These are
disclosed in the Company’s reports filed from time to time with the
THE TRADE DESK, INC. | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(Amounts in thousands, except per share amounts) | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||
December 31, | December 31, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Revenue | $ | 160,468 | $ | 102,648 | $ | 477,294 | $ | 308,217 | |||||||
Operating expenses: | |||||||||||||||
Platform operations | 35,256 | 21,133 | 114,098 | 66,230 | |||||||||||
Sales and marketing | 27,064 | 18,537 | 87,071 | 61,379 | |||||||||||
Technology and development | 24,086 | 17,029 | 83,892 | 52,806 | |||||||||||
General and administrative | 25,094 | 16,631 | 84,910 | 58,446 | |||||||||||
Total operating expenses | 111,500 | 73,330 | 369,971 | 238,861 | |||||||||||
Income from operations | 48,968 | 29,318 | 107,323 | 69,356 | |||||||||||
Total other expense (income), net | (336 | ) | 1,282 | 1,586 | 5,731 | ||||||||||
Income before income taxes | 49,304 | 28,036 | 105,737 | 63,625 | |||||||||||
Provision for income taxes | 9,869 | 11,225 | 17,597 | 12,827 | |||||||||||
Net income | $ | 39,435 | $ | 16,811 | $ | 88,140 | $ | 50,798 | |||||||
Earnings per share: | |||||||||||||||
Basic | $ | 0.91 | $ | 0.41 | $ | 2.08 | $ | 1.26 | |||||||
Diluted | $ | 0.84 | $ | 0.38 | $ | 1.92 | $ | 1.15 | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 43,223 | 41,108 | 42,442 | 40,262 | |||||||||||
Diluted | 46,777 | 44,464 | 45,793 | 44,056 | |||||||||||
STOCK-BASED COMPENSATION EXPENSE |
|||||||||||||||
(Amounts in thousands) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
Three Months Ended |
Year Ended |
||||||||||||||
December 31, |
December 31, |
||||||||||||||
2018 |
2017 |
2018 |
2017 |
||||||||||||
Platform operations |
$ |
1,326 |
$ |
1,131 |
$ |
4,463 |
$ |
2,674 |
|||||||
Sales and marketing |
3,549 |
2,984 |
11,306 |
6,261 |
|||||||||||
Technology and development |
4,950 |
2,680 |
13,855 |
6,661 |
|||||||||||
General and administrative |
4,427 |
2,116 |
12,586 |
5,721 |
|||||||||||
Total |
$ |
14,252 |
$ |
8,911 |
$ |
42,210 |
$ |
21,317 |
|||||||
THE TRADE DESK, INC. | |||||||
CONSOLIDATED BALANCE SHEETS | |||||||
(Amounts in thousands) | |||||||
(Unaudited) | |||||||
As of | As of | ||||||
December 31, 2018 |
December 31, 2017 |
||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 207,232 | $ | 155,950 | |||
Accounts receivable, net | 834,764 | 599,565 | |||||
Prepaid expenses and other current assets | 14,527 | 10,298 | |||||
Total current assets | 1,056,523 | 765,813 | |||||
Property and equipment, net | 33,046 | 17,405 | |||||
Deferred income taxes | 8,460 | 3,359 | |||||
Other assets, non-current | 19,843 | 10,587 | |||||
Total assets | $ | 1,117,872 | $ | 797,164 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 669,147 | $ | 490,377 | |||
Accrued expenses and other current liabilities | 44,844 | 28,155 | |||||
Total current liabilities | 713,991 | 518,532 | |||||
Debt, net | — | 27,000 | |||||
Other liabilities, non-current | 9,314 | 6,049 | |||||
Total liabilities | 723,305 | 551,581 | |||||
Stockholders' equity: | |||||||
Preferred stock | — | — | |||||
Common stock | — | — | |||||
Additional paid-in capital | 270,447 | 209,603 | |||||
Retained earnings | 124,120 | 35,980 | |||||
Total stockholders' equity | 394,567 | 245,583 | |||||
Total liabilities and stockholders' equity | $ | 1,117,872 | $ | 797,164 | |||
THE TRADE DESK, INC. | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Amounts in thousands) | ||||||||
(Unaudited) | ||||||||
Year Ended December 31, | ||||||||
2018 | 2017 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | 88,140 | $ | 50,798 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation and amortization | 11,822 | 7,209 | ||||||
Stock-based compensation | 42,210 | 21,317 | ||||||
Deferred income taxes | (5,101 | ) | (1,581 | ) | ||||
Bad debt expense | 2,115 | 4,289 | ||||||
Other | 2,905 | (1,303 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (239,901 | ) | (224,636 | ) | ||||
Prepaid expenses and other assets | (10,551 | ) | (5,033 | ) | ||||
Accounts payable | 177,675 | 171,793 | ||||||
Accrued expenses and other liabilities | 17,289 | 8,371 | ||||||
Net cash provided by operating activities | 86,603 | 31,224 | ||||||
INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | (19,795 | ) | (10,110 | ) | ||||
Capitalized software development costs | (5,396 | ) | (2,954 | ) | ||||
Business acquisition | — | (3,000 | ) | |||||
Net cash used in investing activities | (25,191 | ) | (16,064 | ) | ||||
FINANCING ACTIVITIES: | ||||||||
Repayment on line of credit | (27,000 | ) | — | |||||
Payment of debt financing costs | (279 | ) | (154 | ) | ||||
Payment of financing obligations | — | (1,001 | ) | |||||
Proceeds from exercise of stock options | 10,021 | 2,565 | ||||||
Proceeds from employee stock purchase plan | 13,805 | 6,997 | ||||||
Taxes paid related to net settlement of restricted
stock awards |
(6,677 | ) | (1,017 | ) | ||||
Net cash provided by (used in) financing activities | (10,130 | ) | 7,390 | |||||
Increase in cash and cash equivalents | 51,282 | 22,550 | ||||||
Cash and cash equivalents—Beginning of period | 155,950 | 133,400 | ||||||
Cash and cash equivalents—End of period | $ | 207,232 | $ | 155,950 | ||||
Non-GAAP Financial Metrics
(Amounts in thousands, except per share amounts)
The following tables show the Company’s GAAP financial metrics reconciled to non-GAAP financial metrics included in this release.
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net income | $ | 39,435 | $ | 16,811 | $ | 88,140 | $ | 50,798 | ||||||||
Add back: | ||||||||||||||||
Depreciation and amortization expense | 3,715 | 2,052 | 11,822 | 7,209 | ||||||||||||
Stock-based compensation expense | 14,252 | 8,911 | 42,210 | 21,317 | ||||||||||||
Interest expense | 601 | 501 | 1,550 | 1,791 | ||||||||||||
Interest income | (821 | ) | (47 | ) | (1,883 | ) | (93 | ) | ||||||||
Secondary offering costs | — | — | — | 1,523 | ||||||||||||
Provision for income taxes | 9,869 | 11,225 | 17,597 | 12,827 | ||||||||||||
Adjusted EBITDA | $ | 67,051 | $ | 39,453 | $ | 159,436 | $ | 95,372 | ||||||||
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
GAAP net income | $ | 39,435 | $ | 16,811 | $ | 88,140 | $ | 50,798 | ||||||||
Add back (deduct): | ||||||||||||||||
Stock-based compensation expense | 14,252 | 8,911 | 42,210 | 21,317 | ||||||||||||
Secondary offering costs | — | — | — | 1,523 | ||||||||||||
Adjustment for income taxes | (2,585 | ) | (1,502 | ) | (6,503 | ) | (3,274 | ) | ||||||||
Non-GAAP net income | $ | 51,102 | $ | 24,220 | $ | 123,847 | $ | 70,364 | ||||||||
GAAP diluted EPS | $ | 0.84 | $ | 0.38 | $ | 1.92 | $ | 1.15 | ||||||||
Non-GAAP diluted EPS | $ | 1.09 | $ | 0.54 | $ | 2.70 | $ | 1.60 | ||||||||
Weighted average shares outstanding—diluted | 46,777 | 44,464 | 45,793 | 44,056 | ||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20190221005898/en/
Source: The
Investors
Chris Toth
Vice President Investor Relations, The
Trade Desk
ir@thetradedesk.com
310-334-9183
Media
Austin Rotter
Associate VP, 5WPR
arotter@5wpr.com
646-862-6866