The Trade Desk, Inc. (NASDAQ:TTD) Q2 2019 Earnings Conference Call Transcript

Aug 08, 2019 • 05:00 pm ET

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The Trade Desk, Inc. (NASDAQ:TTD) Q2 2019 Earnings Conference Call Transcript

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Presentation
Executive
Paul E. Ross

the timing of which can be variable. GAAP net Income was $27.8 million for Q2, or $0.58 per fully diluted share.

Our adjusted net income was $45.6 million, or $0.95 per fully diluted share, compared with adjusted net income of $27.2 million, or $0.60 per share in the comparable period. Adjusted EBITDA was $58 million with a corresponding margin of 36.2% of revenue during Q2. The increase in adjusted EBITDA dollars reflects the strong growth of our top line, offset by our increasing investments in product, people, global expansion, and corporate expenses.

Net cash provided by operating activities was $11 million in Q2, and our trailing 12-months of operating cash flow and free cash flow were $95 million and $60 million, respectively. We continue to have zero debt on our balance sheet and our total cash, cash equivalents, and short-term investments exiting the quarter was $231 million.

Our DSOs at the end of Q2 were 100 days, an increase of one day from the same period a year ago. DPOs for Q2 were 81 days, a decrease of one day from the same period a year ago. For Q3 of 2019, we are expecting revenue of $163 million and adjusted EBITDA of $45 million.

For the full-year 2019, we now expect revenue to be at least $653 million, revised upward from $645 million last quarter. Adjusted EBITDA is now expected to be $201 million, also revised upward from last quarter, or about 31% of revenue.

I will now turn the call back to Jeff for final comments and, of course, Q&A. Jeff?

Executive
Jeff T. Green

Thanks, Paul. Q2 was another very encouraging quarter for The Trade Desk as we continue to see our strategy and execution pay off, as more advertisers commit their budgets to us. We exceeded our expectations for the quarter and are raising them for the year.

The fundamentals of our business are solid, and we continue to scale our business across markets and channels. As the worldwide advertising market moves towards a trillion dollars in a few years, we are well-positioned to win a large share of the programmatic portion of that market, the fastest-growing segment. We invested early in key markets and channels and while we are pleased with our initial gains, we see far more upside yet to come.

That concludes our prepared remarks. Operator, let's open it up for questions.