LOS ANGELES--(BUSINESS WIRE)--Feb. 16, 2022-- The Trade Desk, Inc. (NASDAQ: TTD), a provider of a global technology platform for buyers of advertising, today announced financial results for its fourth quarter and fiscal year ended December 31, 2021.

“2021 was a remarkable year for The Trade Desk capped off by record performance in the fourth quarter. The launch of Solimar, our most important new platform to date, along with major progress in areas such as CTV, identity and retail data, enabled us to gain more share of the data-driven advertising market. As a result, we generated nearly $6.2 billion of total spend on our platform, nearly $1.2 billion in revenue and over $500 million in adjusted EBITDA in 2021 as we continue to scale the business with profitable growth. We exceeded our objectives for 2021 and I could not be more excited about the momentum we’re carrying into the first quarter and the year ahead,” said Jeff Green, founder and CEO of The Trade Desk. “We remain committed to creating a better internet that is open, competitive and fair for all participants. Major advertisers and partners around the world are embracing this vision as the global advertising market races toward a $1 trillion TAM. And as a result, more and more of them are gravitating to our platform.”

Fourth Quarter and Full Year 2021 Financial Highlights:

The following table summarizes our consolidated financial results for the quarters and fiscal years ended December 31, 2021 and 2020 ($ in millions, except per share amounts):

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

395.6

 

 

$

319.9

 

 

$

1,196.5

 

 

$

836.0

 

Increase in revenue year over year

 

 

24

%

 

 

48

%

 

 

43

%

 

 

26

%

Net Income

 

$

8.0

 

 

$

151.9

 

 

$

137.8

 

 

$

242.3

 

Diluted EPS

 

$

0.02

 

 

$

0.31

 

 

$

0.28

 

 

$

0.49

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Results

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

$

191.5

 

 

$

152.9

 

 

$

502.7

 

 

$

283.7

 

Adjusted EBITDA Margin

 

 

48

%

 

 

48

%

 

 

42

%

 

 

34

%

Non-GAAP Net Income

 

$

208.1

 

 

$

184.8

 

 

$

455.6

 

 

$

335.6

 

Non-GAAP Diluted EPS

 

$

0.42

 

 

$

0.37

 

 

$

0.91

 

 

$

0.69

 

Fourth Quarter and 2021 Business Highlights:

  • Continued Share Gains: 2021 gross spend on the platform was approximately $6.2 billion, a 47% increase year-over-year.
  • Strong Customer Retention: Customer retention remained over 95% during the fourth quarter and throughout fiscal year 2021, as it has for the past 8 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. New partnerships in 2021 included: Publicis, Xandr, Acuity Ads, Throttle, FuboTV, Prebid, Interpublic Group, Omnicom Group, AMC Networks, Blockgraph, OpenAP, Snowflake, TrueData, Netwise, iCook, and Made In, among others.
  • Launched New Media Trading Platform, Solimar: Launched in July, Solimar features advanced goals-based media buying, easy first-party-data onboarding, and an innovative measurement marketplace to help marketers optimize their digital advertising campaigns across the open internet.
  • Expanded Partnerships:
    • In Q1, The Trade Desk announced our partnership with Walmart to launch a new DSP based on The Trade Desk’s platform that will provide advertisers with access to unique Walmart shopper data and sales measurement data in a self-service platform.
    • In September, The Trade Desk announced a collaboration with Samsung Ads in India, giving marketers on The Trade Desk platform access to CTV inventory on Samsung Smart TVs offered through its free AVOD streaming service.
    • In October, The Trade Desk partnered with Xiaomi, the world’s second largest smartphone maker, that allows advertisers to access Xiaomi’s global audience through its mobile ad offerings directly via The Trade Desk platform.
    • In November, The Trade Desk expanded its partnership with NBCUniversal, adding Peacock to its industry-leading CTV platform. As a result, the world’s leading advertisers will have access to premium Peacock video on-demand inventory via The Trade Desk, including NBC Sports, NBC and Sky News, NBC Next-Day Prime, Peacock originals, and an extensive catalog of content.
  • Industry Recognition:
    • 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.
    • Great Places to Work: Best Workplace in New York.

Financial Guidance:

Assuming that the economy continues to recover and we do not have any major COVID-19 related setbacks that may cause economic conditions to deteriorate, we estimate the following:

First Quarter 2022 outlook summary:

  • Revenue at least $303 million
  • Adjusted EBITDA of approximately $91 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.

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 Income of The Trade Desk, Inc. (the Company) prepared under generally accepted accounting principles (GAAP). Adjusted EBITDA is earnings before depreciation and amortization, stock-based compensation, interest expense (income), net, and provision for (benefit from) income taxes. Non-GAAP net income excludes charges and the related income tax effects for stock-based compensation. Tax rates on the tax-deductible portions of the stock-based compensation expense approximating 25% to 30% have been used in the computation of non-GAAP net income and non-GAAP diluted EPS. Reconciliations of GAAP to non-GAAP amounts for the periods presented herein are provided in schedules accompanying this release and should be considered together with the Consolidated Statements of Income. These non-GAAP measures are not meant as a substitute for GAAP, but are included solely for informational and comparative purposes. The Company's management believes that this information can assist investors in evaluating the Company's operational trends, financial performance, and cash generating capacity. Management believes these non-GAAP measures allow investors to evaluate the Company’s financial performance using some of the same measures as management. However, the non-GAAP financial measures should not be regarded as a replacement for or superior to corresponding, similarly captioned, GAAP measures and may be different from non-GAAP financial measures used by other companies.

Fourth Quarter and Fiscal Year 2021 Results Webcast and Conference Call Details

  • When: February 16, 2022 at 8:30 A.M. Pacific Time (11:30 A.M. Eastern Time).
  • Webcast: A live webcast of the call can be accessed from the Investor Relations section of The Trade Desk’s website at http://investors.thetradedesk.com/. Following the call, a replay will be available on the company’s website.
  • Dial-in: To access the call via telephone in North America, please dial 888-506-0062. For callers outside the United States, please dial 1-973-528-0011. Participants should reference the conference call ID code “903621” after dialing in.
  • Audio replay: An audio replay of the call will be available beginning about two hours after the call. To listen to the replay in the United States, please dial 877-481-4010 (replay code: 44548). Outside the United States, please dial 1-919-882-2331 (replay code: 44548). The audio replay will be available via telephone until February 23rd, 2022.

The Trade Desk, Inc. uses its Investor Relations website (http://investors.thetradedesk.com/investor-overview), its Twitter feed (@TheTradeDesk), LinkedIn page (https://www.linkedin.com/company/the-trade-desk/), and Facebook page (https://www.facebook.com/TheTradeDesk/), and Jeff Green’s Twitter feed (@jefftgreen) and LinkedIn profile (https://www.linkedin.com/in/jefftgreen/) as a means of disclosing information about the company and for complying with its disclosure obligations under Regulation FD. The information that is posted through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to The Trade Desk’s press releases, SEC filings, public conference calls and webcasts.

About The Trade Desk

The Trade Desk is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across North America, Europe, and Asia Pacific. To learn more, visit thetradedesk.com or follow us on Facebook, Twitter, LinkedIn and YouTube.

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 relatively 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 Securities and Exchange Commission, including its most recent Form 10-K and any subsequent filings on Forms 10-Q or 8-K, available at www.sec.gov. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company does not intend to update any forward-looking statement contained in this press release to reflect events or circumstances arising after the date hereof.

THE TRADE DESK, INC.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONSOLIDATED STATEMENTS OF INCOME

 

(Amounts in thousands, except per share amounts)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Revenue

 

$

395,598

 

 

$

319,905

 

 

$

1,196,467

 

 

$

836,033

 

Operating expenses (1):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform operations

 

 

66,845

 

 

 

51,645

 

 

 

221,554

 

 

 

178,812

 

Sales and marketing

 

 

72,501

 

 

 

58,740

 

 

 

249,298

 

 

 

174,742

 

Technology and development

 

 

62,836

 

 

 

48,723

 

 

 

226,137

 

 

 

166,654

 

General and administrative

 

 

218,777

 

 

 

54,365

 

 

 

374,661

 

 

 

171,617

 

Total operating expenses

 

 

420,959

 

 

 

213,473

 

 

 

1,071,650

 

 

 

691,825

 

Income (loss) from operations

 

 

(25,361

)

 

 

106,432

 

 

 

124,817

 

 

 

144,208

 

Total other expense (income), net

 

 

1,221

 

 

 

(529

)

 

 

2,781

 

 

 

305

 

Income (loss) before income taxes

 

 

(26,582

)

 

 

106,961

 

 

 

122,036

 

 

 

143,903

 

Benefit from income taxes

 

 

(34,621

)

 

 

(44,941

)

 

 

(15,726

)

 

 

(98,414

)

Net income

 

$

8,039

 

 

$

151,902

 

 

$

137,762

 

 

$

242,317

 

Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.02

 

 

$

0.32

 

 

$

0.29

 

 

$

0.52

 

Diluted

 

$

0.02

 

 

$

0.31

 

 

$

0.28

 

 

$

0.49

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

480,873

 

 

 

469,173

 

 

 

476,851

 

 

 

462,865

 

Diluted

 

 

500,314

 

 

 

497,540

 

 

 

498,540

 

 

 

489,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes stock-based compensation expense as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCK-BASED COMPENSATION EXPENSE

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Platform operations

 

$

4,289

 

 

$

3,335

 

 

$

15,913

 

 

$

8,794

 

Sales and marketing

 

 

13,309

 

 

 

11,177

 

 

 

50,671

 

 

 

29,726

 

Technology and development

 

 

16,454

 

 

 

12,327

 

 

 

57,791

 

 

 

36,672

 

General and administrative (1)

 

 

171,351

 

 

 

11,185

 

 

 

213,038

 

 

 

36,583

 

Total

 

$

205,403

 

 

$

38,024

 

 

$

337,413

 

 

$

111,775

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Stock-based compensation for the three months ended December 31, 2021, included a $158 million expense related to a long-term CEO performance grant in G&A.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

THE TRADE DESK, INC.

 

 

 

CONSOLIDATED BALANCE SHEETS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

 

As of

 

 

 

December 31,
2021

 

 

December 31,
2020

 

ASSETS

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

754,154

 

 

$

437,353

 

Short-term investments

 

 

204,625

 

 

 

186,685

 

Accounts receivable, net

 

 

2,020,720

 

 

 

1,584,109

 

Prepaid expenses and other current assets

 

 

112,150

 

 

 

102,170

 

Total current assets

 

 

3,091,649

 

 

 

2,310,317

 

Property and equipment, net

 

 

135,856

 

 

 

115,863

 

Operating lease assets

 

 

234,091

 

 

 

248,143

 

Deferred income taxes

 

 

68,244

 

 

 

50,168

 

Other assets, non-current

 

 

47,500

 

 

 

29,154

 

Total assets

 

$

3,577,340

 

 

$

2,753,645

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,655,684

 

 

$

1,348,480

 

Accrued expenses and other current liabilities

 

 

101,472

 

 

 

88,335

 

Operating lease liabilities

 

 

46,149

 

 

 

37,868

 

Total current liabilities

 

 

1,803,305

 

 

 

1,474,683

 

Operating lease liabilities, non-current

 

 

238,449

 

 

 

254,562

 

Other liabilities, non-current

 

 

8,280

 

 

 

11,255

 

Total liabilities

 

 

2,050,034

 

 

 

1,740,500

 

 

 

 

 

 

 

 

 

 

Stockholders' equity:

 

 

 

 

 

 

 

 

Preferred stock

 

 

 

 

 

 

Common stock

 

 

 

 

 

 

Additional paid-in capital

 

 

915,177

 

 

 

538,778

 

Retained earnings

 

 

612,129

 

 

 

474,367

 

Total stockholders' equity

 

 

1,527,306

 

 

 

1,013,145

 

Total liabilities and stockholders' equity

 

$

3,577,340

 

 

$

2,753,645

 

THE TRADE DESK, INC.

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands)

(Unaudited)

 

 

Year Ended December 31,

 

 

 

2021

 

 

2020

 

OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

Net income

 

$

137,762

 

 

$

242,317

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

42,219

 

 

 

28,632

 

Stock-based compensation

 

 

337,413

 

 

 

111,775

 

Deferred income taxes

 

 

(16,777

)

 

 

(31,218

)

Allowance for credit losses on accounts receivable

 

 

1,456

 

 

 

3,149

 

Noncash lease expense

 

 

40,315

 

 

 

33,269

 

Other

 

 

5,803

 

 

 

2,190

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(444,342

)

 

 

(418,054

)

Prepaid expenses and other assets

 

 

1,648

 

 

 

(66,655

)

Accounts payable

 

 

309,410

 

 

 

481,313

 

Accrued expenses and other liabilities

 

 

7,596

 

 

 

35,446

 

Operating lease liabilities

 

 

(43,990

)

 

 

(17,095

)

Net cash provided by operating activities

 

 

378,513

 

 

 

405,069

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchases of investments

 

 

(278,387

)

 

 

(230,759

)

Sales of investments

 

 

4,539

 

 

 

 

Maturities of investments

 

 

253,444

 

 

 

167,602

 

Purchases of property and equipment

 

 

(54,804

)

 

 

(74,061

)

Capitalized software development costs

 

 

(5,169

)

 

 

(6,053

)

Business acquisition

 

 

(13,261

)

 

 

 

Net cash used in investing activities

 

 

(93,638

)

 

 

(143,271

)

FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from line of credit

 

 

 

 

 

143,000

 

Repayment on line of credit

 

 

 

 

 

(143,000

)

Payment of debt financing costs

 

 

(1,924

)

 

 

 

Proceeds from exercise of stock options

 

 

61,476

 

 

 

76,146

 

Proceeds from employee stock purchase plan

 

 

29,229

 

 

 

21,671

 

Taxes paid related to net settlement of restricted stock awards

 

 

(56,855

)

 

 

(53,138

)

Net cash provided by financing activities

 

 

31,926

 

 

 

44,679

 

Increase in cash and cash equivalents

 

 

316,801

 

 

 

306,477

 

Cash and cash equivalents—Beginning of period

 

 

437,353

 

 

 

130,876

 

Cash and cash equivalents—End of period

 

$

754,154

 

 

$

437,353

 

 

 

 

 

 

 

 

 

 

Non-GAAP Financial Metrics
(Amounts in thousands, except per share amounts)

The following tables show the Company’s non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release.

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

 

 

Net income

 

$

8,039

 

 

$

151,902

 

 

$

137,762

 

 

$

242,317

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization expense

 

 

12,250

 

 

 

7,855

 

 

 

42,219

 

 

 

28,632

 

Stock-based compensation expense

 

 

205,403

 

 

 

38,024

 

 

 

337,413

 

 

 

111,775

 

Interest expense (income), net

 

 

474

 

 

 

84

 

 

 

1,030

 

 

 

(656

)

Benefit from income taxes

 

 

(34,621

)

 

 

(44,941

)

 

 

(15,726

)

 

 

(98,414

)

Adjusted EBITDA

 

$

191,545

 

 

$

152,924

 

 

$

502,698

 

 

$

283,654

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Year Ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

GAAP net income

 

$

8,039

 

 

$

151,902

 

 

$

137,762

 

 

$

242,317

 

Add back (deduct):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation expense

 

 

205,403

 

 

 

38,024

 

 

 

337,413

 

 

 

111,775

 

Adjustment for income taxes

 

 

(5,314

)

 

 

(5,119

)

 

 

(19,619

)

 

 

(18,460

)

Non-GAAP net income

 

$

208,128

 

 

$

184,807

 

 

$

455,556

 

 

$

335,632

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted EPS

 

$

0.02

 

 

$

0.31

 

 

$

0.28

 

 

$

0.49

 

Non-GAAP diluted EPS

 

$

0.42

 

 

$

0.37

 

 

$

0.91

 

 

$

0.69

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding—diluted

 

 

500,314

 

 

 

497,540

 

 

 

498,540

 

 

 

489,881

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investors
Jake Graves
Manager, Investor Relations
The Trade Desk
ir@thetradedesk.com

Media
Melinda Zurich
GM, Communications
The Trade Desk
melinda.zurich@thetradedesk.com
201-320-9398

Source: The Trade Desk, Inc.