The Trade Desk CEO admits Q4 shortfall despite $2.4B revenue in 2024

The Trade Desk has announced its financial results for the fourth quarter and fiscal year ending December 31, 2024, reporting a 26% year-over-year growth in revenue, reaching $2.4 billion. The company also recorded a record $12 billion in ad spend on its platform.

Despite strong annual performance, CEO Jeff Green acknowledged that Q4 results did not fully meet internal expectations. In response, The Trade Desk initiated a company-wide reorganization in December to capitalize on growth opportunities in connected TV (CTV), retail media, identity solutions, supply chain optimization, and audio advertising.

Key Financial Highlights

Total revenue: $2.4 billion (26% YoY growth)
Q4 revenue: $741 million (22% YoY growth)
Net income: $393 million for the year, with a 16% net income margin
Adjusted EBITDA: $1.01 billion for 2024, with a 41% adjusted EBITDA margin

The company maintained a 95% customer retention rate for the 11th consecutive year and expanded support for Unified ID 2.0 (UID2), a privacy-centric identity solution designed to replace third-party cookies.

Strategic Developments

Ventura OS: A new streaming TV operating system aimed at improving user experience, optimizing ad supply chains, and addressing conflicts of interest in content distribution.
Sincera Acquisition: The Trade Desk has agreed to acquire Sincera, a leading digital ad data company, to enhance transparency and provide clearer insights for advertisers and publishers. The deal is expected to close in Q1 2025.
Retail Media & CTV Expansion: The company continues to invest in premium, scalable advertising solutions as brands move away from user-generated content platforms.

Financial Outlook for 2025

For Q1 2025, The Trade Desk projects:

Revenue of at least $575 million
Adjusted EBITDA of approximately $145 million

Stock Repurchase Program

The company repurchased $235 million worth of Class A common stock in 2024 and recently approved an additional $564 million in stock buybacks, bringing the total repurchase authorization to $1 billion.

Investor Call & Future Outlook

Jeff Green emphasized that the company is well-positioned to lead the transition to data-driven advertising on premium digital platforms. The investor webcast is scheduled for February 12, 2025, at 2:00 PM PT.

With continued investment in CTV, identity solutions, and AI-driven advertising, The Trade Desk remains a dominant force in the digital ad industry, ready to capitalize on evolving market trends in 2025 and beyond.

Also Read: The Trade Desk to acquire Sincera to boost digital advertising insights