The Trade Desk, Inc. (NASDAQ:TTD) Q3 2019 Earnings Conference Call Transcript
Nov 07, 2019 • 05:00 pm ET
Paul E. Ross
period last year. Adjusted EBITDA was $47.8 million, with a corresponding margin of 29.1% of revenue during Q3 2019. The increase in adjusted EBITDA dollars reflects the strong growth of our top line, partially offset by our increasing investments across our operating expense lines. Net cash provided by operating activities was about $67.5 million for Q3, and our trailing 12 months of operating cash flow and free cash flow were $136 million and $100 million, respectively.
As a reminder, the timing of our payments and receivables in any given quarter can swing our cash from operations significantly. We continue to have zero down our balance sheet and our cash and short-term investments position continues to climb, exiting the quarter at $297 million. Our DSOs at the end of Q3 were 96 days, a decrease from 4 days from the same period a year ago. DPOs for Q3 were 77 days, also, a decrease of 4 days from the same period a year ago.
For Q4 2019, we are expecting revenue of $213 million and adjusted EBITDA of $78.5 million and for the full year 2019 inclusive of our guidance for Q4, we now expect revenue for the year to be at least $658 million which approximates 38% growth year-over-year, and corresponding adjusted EBITDA to be $209 million or 31.8% of revenue. With that I will hand the call back over to Jeff for any final comments, and of course Q&A. Jeff?
Jeffrey Terry Green
Thanks, Paul. Q3 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 across markets and channels. Looking at the rest of 2019, we anticipate the strong Q4. The advertising commitments that were made in the television upfronts earlier in the year are now kicking in and of course, the holiday advertising season traditionally makes Q4 the strongest quarter of the year.
We see similar opportunities in 2020. We expect another strong growth year in CTV fueled by live events such as the US elections and the Summer Olympics, and more quality inventory than ever on our platform. As the worldwide advertising market moves towards a trillion dollars, the Trade Desk is perhaps the best positioned company to win the largest share of the programmatic portion of that market, which is the fastest growing segment. We feel confident in our strategy, our investments, and the momentum we are seeing from both advertisers and content providers. We see nothing, but upside ahead.
That concludes our prepared remarks. Operator, let's open it up for questions.