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1. Company Snapshot

1.a. Company Description

Trade Desk, Inc.operates as a technology company in the United States and internationally.The company operates a self-service cloud-based platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns across various ad formats and channels, including display, video, audio, native, and social on various devices, such as computers, mobile devices, and connected TV.


It also provides data and other value-added services.The company serves advertising agencies and other service providers for advertisers.The Trade Desk, Inc.


was incorporated in 2009 and is headquartered in Ventura, California.

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1.b. Last Insights on TTD

The Trade Desk's recent performance has been negatively impacted by rising costs, fierce ad-tech competition, and macro headwinds. Despite upbeat Q3 results, the company's outlook has been clouded by these factors. A cautious guidance during Q2 earnings season led to a steep sell-off, although the company's fundamentals remain stellar. Advisory Resource Group and Y Intercept Hong Kong Ltd have reduced their holdings in the company. The Trade Desk's stock has been under pressure, with a significant decline over the past month.

1.c. Company Highlights

2. The Trade Desk's Q3 2025 Earnings: A Strong Performance Driven by CTV and Innovation

The Trade Desk reported a solid Q3 2025 with revenue reaching $739 million, up 18% year-over-year, and adjusted EBITDA of $317 million. Earnings per share (EPS) came in at $0.45, beating estimates of $0.44. The company's financial performance was driven by the continued growth of Connected TV (CTV), which now represents around 50% of its business. International growth outpaced North America, demonstrating the company's expanding global footprint.

Publication Date: Nov -08

📋 Highlights
  • Revenue Growth:: Q3 revenue reached $739M (+18% YoY), with a 22% increase excluding political spend.
  • CTV Dominance:: CTV accounts for 50% of revenue and remains the fastest-growing channel, driven by biddable CTV adoption.
  • Kokai Performance:: Delivered 26% better cost per acquisition, 58% better cost per unique reach, and 94% better click-through rates vs. Solimar.
  • Leadership Changes:: New COO, CFO (Alex Kayyal), and CRO hired to drive operational rigor and data-driven culture.
  • Q4 Guidance:: Projected revenue of $840M (+18.5% YoY), with international growth outpacing North America and political spend contributing 5pp in prior Q4.

Operational Highlights and Product Innovation

The Trade Desk's success is attributed to its focus on innovation, with significant upgrades to its platform, including the launch of products such as Kokai, OpenPath, OpenAds, Pubdesk, and Deal Desk. Kokai, in particular, has delivered impressive results, with a 26% better cost per acquisition, 58% better cost per unique reach, and a 94% better click-through rate compared to Solimar. New CFO Alex Kayyal emphasized a growth mindset, focusing on profitable growth, investing in innovation, and delivering premium value to clients.

Growth Drivers and Market Opportunities

The company's growth is driven by several key areas, including CTV transformation, AI application, retail media expansion, and programmatic buying internationally. The Trade Desk is well-positioned to capture opportunities across the open Internet and advertising, with a large total addressable market (TAM) and a leadership position in the open Internet. Analysts estimate next year's revenue growth at 16.3%, indicating a strong outlook for the company.

Valuation and Outlook

With a P/E Ratio of 47.82 and an EV/EBITDA of 34.43, the market is pricing in significant growth expectations for The Trade Desk. The company's focus on data-driven buying across the open Internet, particularly in high-growth areas like CTV, positions it for continued success. As the company guides for approximately 18.5% year-on-year growth in Q4, excluding U.S. political ad spend, it is confident in its ability to drive outsized growth and deepen the value delivered to advertisers.

Competitive Landscape and Industry Trends

The Trade Desk competes with major players like Google, Netflix, and Disney, but believes it delivers unique capabilities that they can't match. The company sees a structural shift towards a buyer's market, with large CTV content owners and publishers relying on independent partners like The Trade Desk. The expected changes in the industry, including Google's potential shift away from the open Internet, may create opportunities for the company to gain further market share.

3. NewsRoom

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The Trade Desk: Bargain EBITDA Multiples As Margins Recover

Dec -04

Source: seekingalpha.com

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TTD's Innovations This Quarter Set the Stage for Long-Term Growth

Dec -04

Source: zacks.com

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3 Black Friday Stock Deals: More Than 40% Off in 2025

Nov -28

Source: fool.com

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The Trade Desk Stock Investors Need to Know This!

Nov -27

Source: fool.com

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Virtus Silvant Mid-Cap Growth Fund Q3 2025 Performance Review

Nov -26

Source: seekingalpha.com

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The Best Stocks to Buy With $1,000 Right Now

Nov -26

Source: fool.com

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Good News for The Trade Desk Stock Investors

Nov -26

Source: fool.com

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American Century Companies Inc. Buys 280,219 Shares of The Trade Desk $TTD

Nov -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (19.00%)

6. Segments

Advertising Technology Platform

Expected Growth: 19.0%

The Advertising Technology Platform is expected to grow at 19.0% due to the increasing demand for digital advertising and the platform's strong capabilities in data management, audience targeting, and ad buying. The growth is driven by the shift towards digital marketing and the need for more effective and personalized advertising solutions. The Trade Desk is well-positioned to capitalize on this trend, given its advanced technology and strong market presence.

7. Detailed Products

Data Management Platform (DMP)

A platform that enables advertisers to collect, organize, and activate their first-party data to deliver targeted and personalized advertising experiences.

Demand-Side Platform (DSP)

A platform that enables advertisers to manage and optimize their digital advertising campaigns across multiple channels, including display, video, mobile, and social media.

Solimar

A proprietary data and analytics platform that provides real-time insights and measurement capabilities to help advertisers optimize their campaigns.

Koa

An artificial intelligence (AI) engine that uses machine learning to optimize ad campaigns and improve performance.

Cross-Channel Advertising

A solution that enables advertisers to reach their target audiences across multiple channels, including display, video, mobile, social media, and connected TV.

Identity Solution

A solution that enables advertisers to target and measure their campaigns using a variety of identity signals, including cookies, mobile IDs, and email addresses.

8. The Trade Desk, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The Trade Desk, Inc. operates in a niche market, providing a cloud-based platform for ad buyers. While there are some substitutes available, such as Google Marketing Platform and Amazon Advertising, they are not exact substitutes, and The Trade Desk's platform has a strong reputation among its customers.

Bargaining Power Of Customers

The Trade Desk's customers are primarily large advertisers and agencies, which have limited bargaining power due to the company's strong market position and the complexity of its platform.

Bargaining Power Of Suppliers

The Trade Desk's suppliers are primarily data providers and inventory suppliers, which have limited bargaining power due to the company's strong market position and the availability of alternative suppliers.

Threat Of New Entrants

The Trade Desk operates in a highly specialized market, and the barriers to entry are high due to the need for significant investments in technology and talent. Additionally, the company has a strong brand reputation and a large customer base, making it difficult for new entrants to gain traction.

Intensity Of Rivalry

The Trade Desk operates in a highly competitive market, with several established players, including Google, Amazon, and Adobe. The company faces intense competition for market share and talent, and must continually innovate to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.83%
Debt Cost 3.87%
Equity Weight 90.17%
Equity Cost 11.49%
WACC 10.74%
Leverage 10.90%

11. Quality Control: The Trade Desk, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Snowflake

A-Score: 4.6/10

Value: 4.0

Growth: 7.0

Quality: 3.7

Yield: 0.0

Momentum: 9.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Coinbase

A-Score: 4.5/10

Value: 1.0

Growth: 6.9

Quality: 8.8

Yield: 0.0

Momentum: 8.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Datadog

A-Score: 4.4/10

Value: 0.0

Growth: 9.7

Quality: 5.7

Yield: 0.0

Momentum: 7.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Workday

A-Score: 4.3/10

Value: 1.0

Growth: 8.4

Quality: 6.2

Yield: 0.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
MicroStrategy

A-Score: 3.9/10

Value: 5.3

Growth: 0.6

Quality: 7.7

Yield: 0.0

Momentum: 8.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Trade Desk

A-Score: 3.4/10

Value: 0.7

Growth: 9.3

Quality: 7.9

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

40.05$

Current Price

40.05$

Potential

-0.00%

Expected Cash-Flows