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Trade Desk

Nasdaq:TTD
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
TTD
Nasdaq
$9B
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 27 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
-1.1%
NasdaqGM:TTD
2.4%
US Software
1.2%
US Market
1 Year Returns
277.8%
NasdaqGM:TTD
25.6%
US Software
3%
US Market
TTD Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Trade Desk (TTD) -1.1% 27.4% 93.3% 277.8% - -
US Software 2.4% 5.5% 19.8% 25.6% 110.4% 139.4%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • TTD outperformed the Software industry which returned 25.6% over the past year.
  • TTD outperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
TTD
Industry
5yr Volatility vs Market

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 13 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.141 (1 + (1- 21%) (0%))
1.094
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.094 * 5.96%)
9.25%

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.

NasdaqGM:TTD DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.25%)
2019 70.70 Analyst x2 64.72
2020 143.96 Analyst x6 120.61
2021 174.31 Analyst x2 133.67
2022 278.90 Analyst x2 195.76
2023 332.05 Analyst x2 213.33
2024 375.23 Est @ 13.01% 220.66
2025 412.47 Est @ 9.92% 222.02
2026 444.50 Est @ 7.77% 219.00
2027 472.30 Est @ 6.25% 212.99
2028 496.85 Est @ 5.2% 205.08
Present value of next 10 years cash flows $1,807.84
NasdaqGM:TTD DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $496.85 × (1 + 2.73%) ÷ (9.25% – 2.73%)
$7,826.05
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $7,826.05 ÷ (1 + 9.25%)10
$3,230.35
NasdaqGM:TTD Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,807.84 + $3,230.35
$5,038.19
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $5,038.19 / 44.32
$113.66
NasdaqGM:TTD Discount to Share Price
Calculation Result
Value per share (USD) From above. $113.66
Current discount Discount to share price of $205.96
= -1 x ($205.96 - $113.66) / $113.66
-81.2%

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

  • The current share price of Trade Desk is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 (2018-12-31) in USD $2.08
NasdaqGM:TTD Share Price ** NasdaqGM (2019-03-20) in USD $205.96
United States of America Software Industry PE Ratio Median Figure of 84 Publicly-Listed Software Companies 53.03x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* 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)

= 205.96 ÷ 2.08

99.18x

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 99.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 13 Analysts
18.9%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.6x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*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

= 99.18x ÷ 18.9%

5.24x

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 (2018-12-31) in USD $9.00
NasdaqGM:TTD Share Price * NasdaqGM (2019-03-20) in USD $205.96
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.84x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NasdaqGM:TTD PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 205.96 ÷ 9.00

22.9x

* 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 13 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
18.9%
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 2.7%.
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 13 Analysts 18.9%
NasdaqGM:TTD Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 13 Analysts 21.6%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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 (2 months ago) See Below
Future Estimates Average of up to 13 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
2023-12-31 1,671 337 314 2
2022-12-31 1,348 259 222 2
2021-12-31 1,051 235 132 6
2020-12-31 825 169 101 13
2019-12-31 645 136 74 12
NasdaqGM:TTD Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
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
2016-09-30 173 28 -35
2016-06-30 149 0 -35
2016-03-31 126 -14 -35

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Trade Desk's earnings are expected to grow by 18.9% yearly, however this is not considered high growth (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 (2 months ago) See Below
Future Estimates Average of up to 13 Analyst Estimates (S&P Global) See Below

All data from Trade Desk Company Filings, last reported 2 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
2023-12-31 5.70 5.70 5.70 1.00
2022-12-31 4.13 4.13 4.13 1.00
2021-12-31 2.47 2.86 2.01 4.00
2020-12-31 2.01 2.77 1.26 12.00
2019-12-31 1.48 1.96 1.05 11.00
NasdaqGM:TTD Past Financials Data
Date (Data in USD Millions) EPS *
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
2016-09-30 -3.13
2016-06-30 -3.26
2016-03-31 -3.32

*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 4/6, 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 exceeds its 5-year average (73.5% vs 73.2%)
  • Trade Desk's earnings growth has exceeded the US Software industry average in the past year (73.5% vs 32.7%).
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 2 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
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 efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Trade Desk used its assets more 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 5/6, 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 2 months ago.

NasdaqGM:TTD Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
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 13 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
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 3.6%

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
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
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 $6,122,218
AGE 41
TENURE AS CEO 9.3 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 increased by more than 20% in the past year.
  • 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:

4.1
Average Tenure
44
Average Age
  • The tenure for the Trade Desk management team is about average.
Management Team

Jeff Green

TITLE
Founder
COMPENSATION
$6M
AGE
41
TENURE
9.3 yrs

DAve Pickles

TITLE
Founder & CTO
COMPENSATION
$3M
AGE
40

Paul Ross

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
44
TENURE
4.3 yrs

Brian Stempeck

TITLE
Chief Strategy Officer & Director
COMPENSATION
$3M
AGE
39
TENURE
4.1 yrs

Chris Toth

TITLE
Vice President of Investor Relations

Vivian Yang

TITLE
Chief Legal Officer
AGE
51
TENURE
2.6 yrs

Susan Vobejda

TITLE
Chief Marketing Officer
AGE
52
TENURE
1.3 yrs

Vina Leite

TITLE
Chief People Officer
TENURE
0.2 yrs

Matt Harty

TITLE
Senior Vice President of Asia Pacific
AGE
49
TENURE
4.1 yrs

Tahnil Davis

TITLE
Senior Vice President of Finance
Board of Directors Tenure

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

2.9
Average Tenure
42
Average Age
  • The average tenure for the Trade Desk board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jeff Green

TITLE
Founder
COMPENSATION
$6M
AGE
41

Brian Stempeck

TITLE
Chief Strategy Officer & Director
COMPENSATION
$3M
AGE
39
TENURE
0.2 yrs

David Wells

TITLE
Non-Employee Director
COMPENSATION
$289K
AGE
47
TENURE
3.3 yrs

Kate Falberg

TITLE
Non-Employee Director
COMPENSATION
$288K
AGE
57
TENURE
2.6 yrs

Thomas Falk

TITLE
Non-Employee Director
COMPENSATION
$233K
AGE
38
TENURE
6.8 yrs

Eric Paley

TITLE
Non-Employee Director
COMPENSATION
$240K
AGE
42
TENURE
9 yrs

Gokul Rajaram

TITLE
Director
AGE
44
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • Trade Desk 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. 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
14. Feb 19 Sell Revel Partners Company 17. Apr 18 17. Apr 18 -11,152 $55.00 $-613,360
07. Dec 18 Sell Paul Ross Individual 06. Dec 18 06. Dec 18 -3,662 $136.08 $-498,307
01. Dec 18 Sell Kathryn Falberg Individual 28. Nov 18 28. Nov 18 -20,000 $134.83 $-2,696,692
02. Oct 18 Sell Revel Partners Company 01. Oct 18 01. Oct 18 -84 $152.64 $-12,822
15. Aug 18 Sell Paul Ross Individual 13. Aug 18 13. Aug 18 -12,438 $124.73 $-1,551,392
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

The Trade Desk, Inc. (NASDAQ:TTD): Should The Future Outlook Worry You?

On 31 December 2018, The Trade Desk, Inc. … (NASDAQ:TTD) announced its latest earnings update. … with profits predicted to drop by -16% next year

Simply Wall St -

The Trade Desk, Inc. (NASDAQ:TTD): Are Analysts Bullish?

The Trade Desk, Inc.'s (NASDAQ:TTD) most recent earnings announcement in December 2018a … revealed

Simply Wall St -

Announcing: Trade Desk Stock Increased An Energizing 151% In The Last Year

(NASDAQ:TTD) share price had more than doubled in just one year - up 151%. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … The company was close to break-even last year, so earnings per share of US$1.56 isn't particularly stand out.

Simply Wall St -

The Trade Desk, Inc. (NASDAQ:TTD) Earns A Nice Return On Capital Employed

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Why The Trade Desk, Inc. (NASDAQ:TTD) Could Have A Place In Your Portfolio

Attractive stocks have exceptional fundamentals. … In the case of The Trade Desk, Inc. … (NASDAQ:TTD), there's

Simply Wall St -

Need To Know: The Trade Desk, Inc. (NASDAQ:TTD) Insiders Have Been Selling Shares

So shareholders might well want to know whether insiders have been buying or selling shares in The Trade Desk, Inc. … Trade Desk Insider Transactions Over The Last Year. … So we know that an insider sold shares at around the present share price of US$128

Simply Wall St -

Do Directors Own The Trade Desk, Inc. (NASDAQ:TTD) Shares?

Our analysis of the ownership of the company, below, shows that. … institutional investors have bought into the company … See our latest analysis for Trade Desk

Simply Wall St -

Is The Trade Desk, Inc.'s (NASDAQ:TTD) Liquidity Good Enough?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like The Trade Desk, Inc. … Despite this, the two other categories have lagged behind the risk-adjusted returns of commonly ignored mid-cap stocks. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Does The Trade Desk, Inc.'s (NASDAQ:TTD) Stock Price Account For Its Growth?

(NASDAQ:TTD) is considered a high-growth stock, but its last closing price of $143.4 left some investors wondering if this high future earnings potential can be rationalized by its current price tag. … View our latest analysis for Trade Desk? … Trade Desk's growth potential is very attractive

Simply Wall St -

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

After The Trade Desk Inc's (NASDAQ:TTD) earnings announcement on 30 September 2018, … analyst consensus outlook appear cautiously optimistic, … with earnings expected to grow by 26% in the upcoming year,

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
$9,129,157,433
44,324,905
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
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: 2019/03/21 01:02
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/11
Last earnings filing: 2019/02/22
Last earnings reported: 2018/12/31
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.