Trade Desk Inc Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Shyam Patil - Susquehanna International Group, LLP - Analyst : Hey, Jeff. As you know, I've been covering you guys since you've been public and following the company long before that. And until now, for over eight years, you guys have had an amazing run where you've hit your guidance every single time. Just wondering, can you just talk about what went wrong in the fourth quarter where you guys came in below your expectations?

Question: Vasily Karasyov - Cannonball Research - Analyst : I wanted to follow up on the first question. So going into your earnings report, there were a lot of concerns. I heard about weaker brand spend post-election, no budget flush, then issues with Kokai rollout pace. But then other ad funded companies haven't reported anything results similar to yours. So can you probably share a little more detail about what you observed about the difference between you and the industry? And to what extent did factors like polarized political environment, for example, The New York Times called them out quite a lot, lower Q4 GDP print or any product rollout issues impacted the shortfall in Q4?

Question: Justin Patterson - KeyBanc - Analyst : Great. Jeff, really appreciate that degree of detail. I guess as you step back and move through this recalibration period, how do you view the company's potential to sustain a 20%-plus compound growth rate over the next several years? I know you don't provide annual guidance or long-term targets. But I think that would be just helpful for us to kind of think through what the business looks like as you come out of this period. And then Laura separately, how should we think about the investments required to get us to that point?

Question: Youssef Squali - Truist Securities - Analyst : So Jeff, I'm very curious about your Google comments. So are you already observing a significant shift in an advertiser sentiment? Or is the transition occurring at a much more gradual and measured manner? And if it is, how do you frame and size that longer-term opportunity? And then Laura, just quickly, what was the political contribution in Q4, please?

Question: Jason Helfstein - Oppenheimer - Analyst : So Jeff, I just wanted to ask a bit about Amazon. It's gotten a lot of investor attention, a lot of trade press as far as the company making improvements to their DSP, getting aggressive with Prime Video ads. Just how do you view them in the competitive landscape? Did you see any kind of change in the fourth quarter? And just, I guess, how do you think about them as a competitor going forward?

Question: Jessica Reif Cohen - BA Securities - Analyst : One for Jeff and one for Laura, if it's okay. Jeff, it seems like OpenPath is at a tipping point this year, and it was one of your top five priorities or focus. Can you just talk a little bit about the details, the plans for the coming year and also how the acquisition of Sincera will contribute to OpenPath's adoption? And just for Laura, I just -- can you give us some color on the expense ramp? Your Q1 guide implies a pretty significant margin compression. So is that indicative of a full year margin deleveraging as you said? Or is Q1 kind of the biggest impact in the operating expense ramp?

Question: Mark Mahaney - Evercore ISI - Analyst : Okay. I don't know of another company that's 32 for 33, so you've obviously been doing something right. Two questions I wanted to ask. Jeff, you mentioned senior leadership that you want to hire. So can you brief on that a little bit, like in what areas? And then second, you mentioned resuming acceleration in revenue. So at a high level, forget about the numbers and the specific timing, what factors like -- could you triage, what factors would most contribute to a reacceleration in revenue at some point?

Question: Mark Mahaney - Evercore ISI - Analyst : Factors that could cause reacceleration.