The Trade Desk reports strong Q4 and FY 2023, expects continued growth in 2024

The Trade Desk today announced the financial results for its fourth quarter and fiscal year ended December 31, 2023. The company exceeded expectations, achieving 23% year-over-year revenue growth and solidifying its position in the dynamic advertising industry.

• Revenue: $606 million in Q4, $1.95 billion for FY 2023, exceeding analyst estimates.
• Gross Spend: $9.6 billion on the platform, showcasing significant market share gains.
• Customer Retention: Remained above 95%, signifying continued customer satisfaction.
• Profitability: Strong adjusted EBITDA margins of 47% in Q4 and 40% for FY 2023.
• Share Repurchases: Repurchased $647 million of Class A common stock in 2023.
• Innovation: Launched the Kokai platform and actively supports industry initiatives like Unified ID 2.0 and OpenPath.

Outlook: The Trade Desk projects continued growth in Q1 2024, with expected revenue of at least $478 million and adjusted EBITDA of $130 million.

Industry Insights: This report signifies the company's strong performance in a rapidly evolving advertising landscape. The Trade Desk's focus on the open internet, privacy-conscious solutions, and continuous innovation positions it well for future success.

“Once again The Trade Desk outpaced nearly all areas of digital advertising in 2023, with $1.95 billion of revenue representing 23% growth year over year and a record $9.6 billion of spend on our platform. At the same time, we continue to generate significant profitability and cash flow, which allows us to remain at the bleeding edge of our industry, with innovations such as Kokai. Our results are testament to the growing value that advertisers are placing on the open internet versus the limitations of walled gardens,” said Jeff Green, founder and CEO of The Trade Desk. “More and more of the world’s leading advertisers are gravitating to channels and partnerships that offer precision and premium value at scale, such as Connected TV (CTV) and retail media. More companies across the advertising ecosystem are leveraging new tools, such as UID2, OpenPath and OpenPass, which allow them to build the new identity and authentication fabric of the open internet. And with the launch of Kokai, we are bringing more value to advertisers with the industry’s most advanced, intuitive media buying platform.”