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Trade Desk

Nasdaq:TTD
Snowflake Description

Flawless balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TTD
Nasdaq
$13B
Market Cap
  1. Home
  2. US
  3. Software
Company description

The Trade Desk, Inc., a technology company, provides a self-service omnichannel software platform that enables clients to purchase and manage data-driven digital advertising campaigns in the United States and internationally. The last earnings update was 82 days ago. More info.


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  • Trade Desk has significant price volatility in the past 3 months.
TTD Share Price and Events
7 Day Returns
-0%
NasdaqGM:TTD
-2.1%
US Software
-2.7%
US Market
1 Year Returns
101.2%
NasdaqGM:TTD
38.7%
US Software
21.2%
US Market
TTD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Trade Desk (TTD) -0% 11.5% 40.3% 101.2% 852.3% -
US Software -2.1% 3.4% 12.6% 38.7% 124% 190.4%
US Market -2.7% 0.1% 6.9% 21.2% 38.6% 53.4%
1 Year Return vs Industry and Market
  • TTD outperformed the Software industry which returned 38.7% over the past year.
  • TTD outperformed the Market in United States of America which returned 21.2% over the past year.
Price Volatility
TTD
Industry
5yr Volatility vs Market
Related Companies

TTD Value

 Is Trade Desk undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Trade Desk to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Trade Desk.

NasdaqGM:TTD Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:TTD
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.135 (1 + (1- 21%) (1.44%))
1.099
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.1
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.099 * 5.44%)
7.72%

Discounted Cash Flow Calculation for NasdaqGM:TTD using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Trade Desk is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGM:TTD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.72%)
2020 126.64 Analyst x4 117.57
2021 216.34 Analyst x4 186.45
2022 318.97 Analyst x2 255.21
2023 507.56 Analyst x1 377.00
2024 709.97 Analyst x1 489.56
2025 865.36 Est @ 21.89% 553.96
2026 1,002.46 Est @ 15.84% 595.75
2027 1,118.87 Est @ 11.61% 617.29
2028 1,215.67 Est @ 8.65% 622.64
2029 1,295.63 Est @ 6.58% 616.05
Present value of next 10 years cash flows $4,431.00
NasdaqGM:TTD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,295.63 × (1 + 1.74%) ÷ (7.72% – 1.74%)
$22,052.28
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $22,052.28 ÷ (1 + 7.72%)10
$10,485.57
NasdaqGM:TTD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,431.00 + $10,485.57
$14,916.57
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $14,916.57 / 45.13
$330.49
NasdaqGM:TTD Discount to Share Price
Calculation Result
Value per share (USD) From above. $330.49
Current discount Discount to share price of $281.79
= -1 x ($281.79 - $330.49) / $330.49
14.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Trade Desk is available for.
Intrinsic value
15%
Share price is $281.79 vs Future cash flow value of $330.49
Current Discount Checks
For Trade Desk to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Trade Desk's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Trade Desk's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Trade Desk's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Trade Desk's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:TTD PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-09-30) in USD $2.20
NasdaqGM:TTD Share Price ** NasdaqGM (2020-01-28) in USD $281.79
United States of America Software Industry PE Ratio Median Figure of 73 Publicly-Listed Software Companies 48.56x
United States of America Market PE Ratio Median Figure of 2,920 Publicly-Listed Companies 18.34x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Trade Desk.

NasdaqGM:TTD PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:TTD Share Price ÷ EPS (both in USD)

= 281.79 ÷ 2.20

128.31x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Trade Desk is overvalued based on earnings compared to the US Software industry average.
  • Trade Desk is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Trade Desk's expected growth come at a high price?
Raw Data
NasdaqGM:TTD PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 128.31x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
26.7%per year
United States of America Software Industry PEG Ratio Median Figure of 61 Publicly-Listed Software Companies 2.6x
United States of America Market PEG Ratio Median Figure of 2,029 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NasdaqGM:TTD PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 128.31x ÷ 26.7%

4.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Trade Desk is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Trade Desk's assets?
Raw Data
NasdaqGM:TTD PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-09-30) in USD $11.87
NasdaqGM:TTD Share Price * NasdaqGM (2020-01-28) in USD $281.79
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.86x
United States of America Market PB Ratio Median Figure of 5,101 Publicly-Listed Companies 1.82x
NasdaqGM:TTD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:TTD Share Price ÷ Book Value per Share (both in USD)

= 281.79 ÷ 11.87

23.75x

* Primary Listing of Trade Desk.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Trade Desk is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess Trade Desk's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Trade Desk has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

TTD Future Performance

 How is Trade Desk expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
26.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Trade Desk expected to grow at an attractive rate?
  • Trade Desk's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Trade Desk's earnings growth is expected to exceed the United States of America market average.
  • Trade Desk's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:TTD Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:TTD Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 26.7%
NasdaqGM:TTD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 22.6%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 14.5%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 12%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.6%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:TTD Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:TTD Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 2,115 506 498 3
2023-12-31 1,757 391 364 4
2022-12-31 1,403 323 240 6
2021-12-31 1,085 250 152 14
2020-12-31 860 197 114 17
2020-01-29
2019-12-31 659 148 96 17
NasdaqGM:TTD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-09-30 606 136 97
2019-06-30 560 95 98
2019-03-31 513 85 89
2018-12-31 477 87 88
2018-09-30 419 63 66
2018-06-30 380 56 55
2018-03-31 341 66 55
2017-12-31 308 31 51
2017-09-30 278 43 44
2017-06-30 252 40 35
2017-03-31 226 35 21
2016-12-31 203 75 -27

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Trade Desk's earnings are expected to grow significantly at over 20% yearly.
  • Trade Desk's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:TTD Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Trade Desk Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:TTD Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 8.94 8.94 8.94 1.00
2023-12-31 6.80 7.18 6.41 2.00
2022-12-31 4.53 5.08 4.04 4.00
2021-12-31 2.82 3.63 1.37 11.00
2020-12-31 2.22 2.79 1.19 15.00
2020-01-29
2019-12-31 1.99 2.09 1.82 15.00
NasdaqGM:TTD Past Financials Data
Date (Data in USD Millions) EPS *
2019-09-30 2.20
2019-06-30 2.24
2019-03-31 2.07
2018-12-31 2.08
2018-09-30 1.56
2018-06-30 1.34
2018-03-31 1.34
2017-12-31 1.26
2017-09-30 1.12
2017-06-30 1.07
2017-03-31 0.84
2016-12-31 -1.46

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Trade Desk is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Trade Desk's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Trade Desk has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

TTD Past Performance

  How has Trade Desk performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Trade Desk's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Trade Desk has delivered over 20% year on year earnings growth in the past 5 years.
  • Trade Desk's 1-year earnings growth is less than its 5-year average (47.8% vs 62.7%)
  • Trade Desk's earnings growth has exceeded the US Software industry average in the past year (47.8% vs 18.4%).
Earnings and Revenue History
Trade Desk's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Trade Desk Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:TTD Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-09-30 605.58 96.81 244.86 108.04
2019-06-30 560.20 97.68 216.30 101.47
2019-03-31 512.61 89.22 193.20 91.50
2018-12-31 477.29 88.14 171.98 83.89
2018-09-30 419.47 65.52 154.99 76.84
2018-06-30 380.06 55.45 140.82 67.40
2018-03-31 340.53 54.96 126.56 60.05
2017-12-31 308.22 50.80 119.83 52.81
2017-09-30 277.98 44.27 110.15 45.40
2017-06-30 251.52 35.01 99.92 39.51
2017-03-31 225.90 21.23 91.80 33.14
2016-12-31 202.93 -26.73 78.22 27.31
2016-09-30 173.17 -35.17 65.73 22.01
2016-06-30 148.99 -34.69 55.73 18.13
2016-03-31 126.26 -34.76 47.40 15.18
2015-12-31 113.84 8.76 40.07 12.82
2014-12-31 44.55 0.00 23.98 7.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Trade Desk has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Trade Desk used its assets less efficiently than the US Software industry average last year based on Return on Assets.
  • Trade Desk's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Trade Desk's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Trade Desk has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

TTD Health

 How is Trade Desk's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Trade Desk's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Trade Desk is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Trade Desk's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Trade Desk's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Trade Desk has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Trade Desk Company Filings, last reported 3 months ago.

NasdaqGM:TTD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-09-30 535.39 0.00 296.53
2019-06-30 492.22 0.00 231.05
2019-03-31 429.40 0.00 217.94
2018-12-31 394.57 0.00 207.23
2018-09-30 337.01 0.00 166.35
2018-06-30 300.97 0.00 141.68
2018-03-31 262.93 0.00 138.95
2017-12-31 245.58 27.00 155.95
2017-09-30 215.26 27.00 132.80
2017-06-30 198.23 27.00 115.86
2017-03-31 171.93 25.85 106.57
2016-12-31 164.38 25.85 133.40
2016-09-30 145.73 52.05 123.97
2016-06-30 62.89 57.24 37.61
2016-03-31 54.51 52.35 30.86
2015-12-31 45.27 44.89 4.05
2014-12-31 22.83 16.56 17.32
  • Trade Desk has no debt.
  • Trade Desk currently has no debt however we can't compare to 5 years ago as we have no data for that period.
  • Trade Desk has no debt, it does not need to be covered by operating cash flow.
  • Trade Desk has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Trade Desk's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Trade Desk has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

TTD Dividends

 What is Trade Desk's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Trade Desk dividends. Estimated to be 0% next year.
If you bought $2,000 of Trade Desk shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Trade Desk's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Trade Desk's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:TTD Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1962 Stocks 2.3%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:TTD Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2020-01-29
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Trade Desk has not reported any payouts.
  • Unable to verify if Trade Desk's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Trade Desk's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Trade Desk has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Trade Desk's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Trade Desk's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Trade Desk afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Trade Desk has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

TTD Management

 What is the CEO of Trade Desk's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jeff Green
COMPENSATION $10,782,252
AGE 42
TENURE AS CEO 10.2 years
CEO Bio

Mr. Jeffrey Terry Green, also known as Jeff, is the Founder of The Trade Desk, Inc. and has been its Chief Executive Officer and president since November 2011. He serves as the Chairman of the Board at The Trade Desk, Inc. and has been its Director since November 2009. Prior to joining the Trade Desk and from May 2004 to October 2009, Mr. Green founded AdECN. Mr. Green served as the Chief Operating Officer of AdECN Inc., (formerly Experclick Inc.). He served as Vice President of Operations at Experclick Inc. He served as Vice President of Operations and Search Marketing at eBound Strategies.com. While at eBound, he designed several patent-pending technologies for online ad conversion and tracking and designed the advertising network for theproductdepot.com. Previously, Mr. Green served as the Marketing Production Manager of 411 WEB.COM, where he managed the Marketing Production Department, Design Department and the Customer Service Departments: during his tenure there 411 WEB.COM was rated by Newsweek as one of the hundred best web sites on the Internet. He began his career as the Technical Account Manager of the MSN division of Microsoft in Salt Lake City.

CEO Compensation
  • Jeff's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Jeff's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Trade Desk management team in years:

2.8
Average Tenure
42
Average Age
  • The tenure for the Trade Desk management team is about average.
Management Team

Jeff Green

TITLE
Founder
COMPENSATION
$11M
AGE
42
TENURE
10.2 yrs

DAve Pickles

TITLE
Founder & CTO
COMPENSATION
$4M
AGE
41

Vivian Yang

TITLE
Chief Legal Officer
COMPENSATION
$4M
AGE
52
TENURE
3.4 yrs

Susan Vobejda

TITLE
Chief Marketing Officer
COMPENSATION
$4M
AGE
53
TENURE
2.2 yrs

Brian Stempeck

TITLE
Chief Strategy Officer & Director
COMPENSATION
$4M
AGE
40
TENURE
4.8 yrs

Blake Grayson

TITLE
Chief Financial Officer
TENURE
0.2 yrs

Chris Toth

TITLE
Vice President of Investor Relations

Mason Burnham

TITLE
Senior Director of Communications

Ian Colley

TITLE
Vice President of Communications

Vina Leite

TITLE
Chief People Officer
TENURE
0.8 yrs
Board of Directors Tenure

Average tenure and age of the Trade Desk board of directors in years:

3.4
Average Tenure
44
Average Age
  • The tenure for the Trade Desk board of directors is about average.
Board of Directors

Brian Stempeck

TITLE
Chief Strategy Officer & Director
COMPENSATION
$4M
AGE
40
TENURE
1 yrs

David Wells

TITLE
Non-Employee Director
COMPENSATION
$554K
AGE
48
TENURE
4.1 yrs

Jeff Green

TITLE
Founder
COMPENSATION
$11M
AGE
42

Kate Falberg

TITLE
Non-Employee Director
COMPENSATION
$562K
AGE
58
TENURE
3.4 yrs

Thomas Falk

TITLE
Non-Employee Director
COMPENSATION
$506K
AGE
39
TENURE
7.7 yrs

Eric Paley

TITLE
Non-Employee Director
COMPENSATION
$520K
AGE
43
TENURE
9.8 yrs

Gokul Rajaram

TITLE
Independent Director
COMPENSATION
$851K
AGE
45
TENURE
1.7 yrs

Lise Buyer

TITLE
Director
AGE
59
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Trade Desk individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
13. Nov 19 Sell Kathryn Falberg Individual 11. Nov 19 11. Nov 19 -29,786 $207.08 $-6,165,585
17. Jun 19 Sell Vivian Yang Individual 14. Jun 19 14. Jun 19 -1,389 $246.28 $-342,083
13. Jun 19 Sell Eric Paley Individual 11. Jun 19 11. Jun 19 -400 $248.82 $-99,528
12. Jun 19 Sell eValue AG Company 11. Jun 19 11. Jun 19 -25,000 $250.00 $-6,250,000
11. Jun 19 Sell Paul Ross Individual 07. Jun 19 07. Jun 19 -275 $247.43 $-68,043
22. May 19 Sell Paul Ross Individual 21. May 19 21. May 19 -1,114 $203.08 $-226,231
13. Mar 19 Sell Kathryn Falberg Individual 11. Mar 19 11. Mar 19 -40,000 $205.47 $-8,218,964
27. Feb 19 Sell Jeffrey Green Individual 25. Feb 19 25. Feb 19 -5,147 $200.00 $-1,025,228
X
Management checks
We assess Trade Desk's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Trade Desk has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

TTD News

Simply Wall St News

How To Take Advantage Of The Trade Desk, Inc. (NASDAQ:TTD) In A Bear Market

Looking at its size, financial health and track record, I believe there's an opportunity with Trade Desk during these volatile times. … See our latest analysis for Trade Desk The Trade Desk, Inc., a technology company, provides a self-service omnichannel software platform that enables clients to purchase and manage data-driven digital advertising campaigns in the United States and internationally. … This continuous market outperformance demonstrates a strong track record of delivering robust returns over many years, raising my confidence in Trade Desk as a long-term hold.

Simply Wall St -

Have Insiders Been Selling The Trade Desk, Inc. (NASDAQ:TTD) Shares This Year?

So we'll take a look at whether insiders have been buying or selling shares in The Trade Desk, Inc. … NasdaqGM:TTD Recent Insider Trading, August 23rd 2019 Trade Desk Insiders Are Selling The Stock The last three months saw significant insider selling at Trade Desk. … Trade Desk insiders own about US$1.3b worth of shares (which is 11% of the company).

Simply Wall St -

Did You Miss Trade Desk's (NASDAQ:TTD) 92% Share Price Gain?

(NASDAQ:TTD) share price is 92% higher than it was a year ago, much better than the market return of around -0.05% (not including dividends) in the same period. … By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During the last year Trade Desk grew its earnings per share (EPS) by 67%.

Simply Wall St -

Are The Trade Desk, Inc.’s (NASDAQ:TTD) High Returns Really That Great?

The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Trade Desk: 0.21 = US$103m ÷ (US$1.1b - US$583m) (Based on the trailing twelve months to March 2019.) Therefore, Trade Desk has an ROCE of 21%. … Trade Desk has a relatively high level of current liabilities, boosting its ROCE meaningfully. … What We Can Learn From Trade Desk's ROCE The ROCE would not look as appealing if the company had fewer current liabilities.

Simply Wall St -

Here's Why We Think Trade Desk (NASDAQ:TTD) Is Well Worth Watching

In contrast to all that, I prefer to spend time on companies like Trade Desk (NASDAQ:TTD), which has not only revenues, but also profits. … In the last three years Trade Desk's earnings per share took off like a rocket; fast, and from a low base. … Although Trade Desk certainly looks good to me, I would like it more if insiders were buying up shares.

Simply Wall St -

Will The Trade Desk, Inc.'s (NASDAQ:TTD) Earnings Grow In The Year Ahead?

Looking at The Trade Desk, Inc.'s (NASDAQ:TTD) earnings update in March 2019, analyst forecasts seem fairly subdued, with profits predicted to rise by 2.1% next year compared with the higher past 5-year average growth rate of 70%. … To reduce the year-on-year volatility of analyst earnings forecast, I've inserted a line of best fit through the expected earnings figures to determine the annual growth rate from the slope of the line. … NasdaqGM:TTD Past and Future Earnings, June 27th 2019 This results in an annual growth rate of 29% based on the most recent earnings level of US$88m to the final forecast of US$177m by 2022.

Simply Wall St -

Is The Trade Desk, Inc.'s (NASDAQ:TTD) Future Growth Already Accounted For In Today's Price?

Check out our latest analysis for Trade Desk Why you should get excited about TTD future Trade Desk's extremely high growth potential in the near future is attracting investors. … Trade Desk is available at price-to-earnings ratio of 108.92x, showing us it is overvalued based on current earnings compared to the Software industry average of 51.02x , and overvalued compared to the US market average ratio of 17.76x. … A PE ratio of 108.92x and expected year-on-year earnings growth of 29% give Trade Desk a quite high PEG ratio of 3.79x.

Simply Wall St -

A Spotlight On The Trade Desk, Inc.'s (NASDAQ:TTD) Fundamentals

High growth potential with proven track record One reason why investors are attracted to TTD is its notable earnings growth potential in the near future of 29%. … NasdaqGM:TTD Past and Future Earnings, June 15th 2019 TTD is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. … NasdaqGM:TTD Historical Debt, June 15th 2019 Next Steps: For Trade Desk, I've put together three relevant aspects you should further research: Valuation: What is TTD worth today?

Simply Wall St -

What Type Of Shareholder Owns The Trade Desk, Inc.'s (NASDAQ:TTD)?

Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … See our latest analysis for Trade Desk NasdaqGM:TTD Ownership Summary, June 3rd 2019 What Does The Institutional Ownership Tell Us About Trade Desk? … As you can see, institutional investors own 71% of Trade Desk.

Simply Wall St -

Is The Trade Desk, Inc. (NASDAQ:TTD) A Financially Strong Company?

Additionally, TTD has generated US$85m in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 106%, indicating that TTD’s current level of operating cash is high enough to cover debt. … With current liabilities at US$583m, it appears that the company has been able to meet these obligations given the level of current assets of US$945m, with a current ratio of 1.62x. … Next Steps: TTD has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at a safe level.

Simply Wall St -

TTD Company Info

Description

The Trade Desk, Inc., a technology company, provides a self-service omnichannel software platform that enables clients to purchase and manage data-driven digital advertising campaigns in the United States and internationally. The company’s platform allows clients to manage integrated advertising campaigns in various advertising channels and formats, including display, video, audio, native and social, and on a multitude of devices, such as computers, mobile devices, and connected TV (CTV). It serves advertising agencies and other service providers for advertisers. The Trade Desk, Inc. was founded in 2009 and is headquartered in Ventura, California.

Details
Name: The Trade Desk, Inc.
TTD
Exchange: NasdaqGM
Founded: 2009
$12,718,411,586
45,134,361
Website: http://www.thetradedesk.com
Address: The Trade Desk, Inc.
42 North Chestnut Street,
Ventura,
California, 93001,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM TTD Class A Common Stock Nasdaq Global Market US USD 21. Sep 2016
DB TT8 Class A Common Stock Deutsche Boerse AG DE EUR 21. Sep 2016
LSE 0LF5 Class A Common Stock London Stock Exchange GB USD 21. Sep 2016
BRSE TT8 Class A Common Stock Berne Stock Exchange CH CHF 21. Sep 2016
WBAG TTD Class A Common Stock Wiener Boerse AG AT EUR 21. Sep 2016
BMV TTD * Class A Common Stock Bolsa Mexicana de Valores MX MXN 21. Sep 2016
Number of employees
Current staff
Staff numbers
944
Trade Desk employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/01/29 01:27
End of day share price update: 2020/01/28 00:00
Last estimates confirmation: 2020/01/22
Last earnings filing: 2019/11/08
Last earnings reported: 2019/09/30
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.