How does The Trade Desk's expense ratio compare historically?

The Trade Desk's expense ratio has shown a general upward trend over the past few years, which is consistent with the company's growth and expansion efforts.

1. **Growth in Operating Expenses**: The company's annual operating expenses increased from $76 million in 2015 to $1.746 billion in 2023, with notable jumps in 2020, 2021, and 2022. This indicates a period of significant investment and expansion.

2. **Yearly Variations**: There were variations in expense ratios within specific years. For instance, in 2023, there was a 19.23% increase in operating expenses from the previous year, while in 2022, it was a 36.62% increase. This suggests that the company's expense management has been responsive to changing business needs and market conditions.
3. **Quarterly Fluctuations**: Quarterly operating expenses also showed fluctuations, with a high of $520 million in Q3 2024 and a low of $406 million in Q1 2023. This volatility may reflect seasonal trends or strategic adjustments in spending patterns.
4. **Comparison with Revenue Growth**: The company's revenue has grown at a faster rate than its operating expenses, as evidenced by the increase in revenue from $1.946 billion in 2023 to over $2.4 billion in 2024. This indicates that the company is managing its expenses effectively to support its growing revenue base.
5. **Strategic Investments**: The company's investments in areas such as Connected TV (CTV), international growth, and technological advancements in Kokai are reflected in the increased operating expenses. These strategic investments are likely to position the company for future growth and profitability.

In conclusion, The Trade Desk's expense ratio has been on an upward trajectory, primarily driven by strategic investments and growth initiatives. The company's ability to manage these expenses alongside revenue growth suggests a strong financial strategy and a focus on long-term sustainability.