The Trade Desk(TTD)2025-02-13 00:59Financial Data and Key Metrics Changes - Total spend on the platform exceeded 2.4 billion, reflecting a nearly 26% year-over-year growth [7][76] - Adjusted EBITDA for the year was over 630 million [7][76] - Q4 revenue was $741 million, representing a 22% year-over-year increase, but fell short of expectations for the first time in 33 quarters [74][75] Business Line Data and Key Metrics Changes - Video, including CTV, accounted for a high-40s percentage share of the business, while mobile represented a mid-30s percentage share [77] - Display made up a low-double digit percent share, and audio represented around 5% of total spend [77] - Growth was broad-based across verticals, particularly in Automotive, Shopping, and Technology & Computing [79] Market Data and Key Metrics Changes - North America represented about 88% of spend, while international markets accounted for approximately 12% [78] - International growth outpaced North America for the eighth consecutive quarter, with strong CTV growth in international regions [78] Company Strategy and Development Direction - The company is recalibrating for future growth, emphasizing internal effectiveness and scalability, and restructuring client-facing teams [14][16][100] - A focus on Joint Business Plans (JBPs) is being prioritized, as they grow 50% faster than the rest of the business [19][62] - Investments in AI and improvements in the supply chain are key initiatives to enhance product offerings and operational efficiency [25][44] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a series of small execution missteps led to missing expectations, but emphasized the long-term growth opportunity remains intact [12][75] - The company is optimistic about 2025, citing strong growth drivers such as the shift to CTV, enhanced measurement through retail data, and international expansion [89][90] - Management believes that the opportunity in the open internet is larger than previously anticipated, and they are committed to capturing market share [29][126] Other Important Information - The company announced the acquisition of Sincera, aimed at improving the supply chain for the open internet [23][43] - A significant reorganization was implemented to clarify roles and responsibilities within the company [14][15] Q&A Session Summary Question: What went wrong in Q4 where expectations were missed? - Management acknowledged missing their own expectations due to a series of small execution missteps while preparing for future growth [92][94] Question: How did external factors like the political environment and GDP impact results? - Management noted that while the environment was not ideal, they had navigated similar challenges before and still outperformed [108][111] Question: What is the potential for sustaining a 20% plus compound growth rate? - Management expressed confidence in reaccelerating growth by focusing on improving the supply chain, growing CTV and audio, and enhancing product offerings [120][126]