The Trade Desk's Q3 2025 Earnings Call: Contradictions Emerge on Amazon/Google Competition, Advertising Demand, and Google's Open Internet Strategy

Date of Call: November 6, 2025

Financials Results

• Revenue: $739 million, up 18% year-over-year; +22% YOY excluding political spend
• EPS: $0.45 per diluted share (adjusted net income $221M)
• Operating Margin: Adjusted EBITDA ~$317 million, ~43% of revenue (Q3)

Guidance:

• Q4 revenue at least $840 million (~18.5% YOY growth excluding 2024 U.S. political spend)
• Q4 adjusted EBITDA approximately $375 million
• Company expects to capture 2026 upside via CTV, AI, retail media and international expansion

Business Commentary:

• Revenue Growth and Market Expansion:
• The Trade Desk reported revenue of $739 million for Q3 2025, representing 18% year-over-year growth, and 22% excluding political spend.

• Growth was driven by strong capture of advertiser wallet share among large global brands and the expansion of CTV and AI chatbots.

• CTV and Retail Media Growth:

• CTV remained the largest and fastest-growing channel, consistently growing at a faster rate than the overall business.

• Retail media has also scaled rapidly, with strong adoption across various verticals as more shopper marketing budgets flow into programmatic.

  

• Product Innovation and AI Advancements:

• The company launched significant product innovations such as Kokai and OpenPath, which have led to significant performance improvements.

• AI is accelerating progress by enhancing the efficiency of the open Internet, with Kokai delivering 26% better cost per acquisition and 58% better cost per unique reach compared to previous versions.

• Operational and Leadership Changes:

• The Trade Desk welcomed new COO, CFO, and CRO leaders, enhancing operational structure and discipline, leading to improved efficiency and scale.
• Changes included streamlining the go-to-market organization, enhancing cross-regional coordination, and focusing on rigorous execution for international growth.
  

  Sentiment Analysis:

  Overall Tone: Positive

  • Management: "we again posted strong growth... Revenue grew approximately 18%"; CFO: "generated approximately $317 million in adjusted EBITDA or about 43% of revenue." CEO: "I've never been more excited about the road ahead." Comments emphasize product launches (Kokai, OpenPath, OpenAds) and international/CTV momentum.

Q&A:

• Question from Shyam Patil (Susquehanna Financial Group): Can you clarify whether you view Amazon as a competitor and how Google/Amazon evolving their DSPs (including pricing at 0) affects your business?
  Response: Jeff: Amazon primarily monetizes owned-and-operated inventory (sponsored listings, Prime Video); its DSP plays minimally in the open Internet, so Trade Desk competes on value and objectivity rather than on price.

• Question from Shyam Patil (Susquehanna Financial Group): Alex, after joining as CFO, where do you expect to drive the most impact over the next couple years?
  Response: Alex: Focus on disciplined resource allocation and metrics-driven rigor—optimize go-to-market incentives, accelerate international expansion and pursue the mid-market.

• Question from Justin Patterson (KeyBanc Capital Markets): Walk through the most impactful talent changes this year, green shoots, and areas needing more work.
  Response: Jeff: New senior hires and tighter operating cadence have improved go-to-market coordination and JBP execution; continued investment needed in training, tooling and consistency.

• Question from Vasily Karasyov (Cannonball Research): What macro trends do you see benefiting Trade Desk in 2026 and how does your restructuring position you to take advantage?
  Response: Jeff: A buyer's market and brands shifting to measurable, data-driven open-Internet buying favor TTD; supply-chain products (OpenPath/OpenAds/Pubdesk) and international investments position the company to capture share.

• Question from Jason Helfstein (Oppenheimer & Co.): Are you seeing an impact from agentic search/AI on available publisher inventory and how are publishers navigating that?
  Response: Jeff: Impact is de minimis for the open Internet; AI may reduce ads-per-page and create premium, search-like inventory opportunities while core channels like CTV remain strong.

• Question from Jason Helfstein (Oppenheimer & Co.): Given Kokai adoption issues last year and easier comps, should we be concerned about the Q4 revenue guide being a deceleration?
  Response: Alex: Q4 guide is grounded in October/November trends; excluding political comps the company expects ~18.5% YOY growth with continued strength in Decision TV, retail media and international.

• Question from Youssef Squali (Truist Securities): Thoughts on potential fallout from the Google antitrust trial and which new products will matter most over the next 12–18 months?
  Response: Jeff: Google will likely pull back from the open Internet, which benefits TTD; Kokai (platform) is the standout product driver, with Deal Desk and Audience Unlimited also key innovations.

Contradiction Point 1

Competition with Amazon and Google

It involves the company's stance on the competitive landscape, specifically regarding Amazon and Google, which are significant players in the digital advertising space. This could directly impact strategic positioning and business development.

Do you consider Amazon a competitor? How do you see the competitive environment evolving as companies like Google and Amazon evolve their DSPs? Will they price everything at $0 to gain market share, similar to Amazon's current approach? - Shyam Patil (Susquehanna Financial Group, LLLP)

2025Q3: Amazon and Google are amazing companies, but their advertising efforts are primarily about monetizing owned and operated inventory. Amazon's DSP is mostly about buying Prime video, with low single digits buying the open Internet. We focus on decision-driven buying across the open Internet, especially in high-growth areas like CTV. Amazon DSP doesn't compete directly with ours, and I think in 10 years, Amazon will have tools to buy owned and operated inventory but not compete as a DSP. - Jeffrey Green(CEO)

How are you assessing Amazon's advertising competition, especially DSP and Prime Video ad inventory? - Youssef Houssaini Squali (Truist Securities)

2025Q2: Amazon is not really a competitor for us. Our strategy is focused on the entire Internet, not just Amazon's owned inventory. We're concentrated on accessing the open Internet objectively. Amazon competes with many large brands in retail and cloud, impacting trust in their ad platform. - Jeffrey Terry Green(CEO)

Contradiction Point 2

Advertising Demand and Market Conditions

It highlights differing perspectives on the state of advertising demand and market conditions, which directly impact the company's financial outlook and strategic positioning.

What broader advertising and macro trends will benefit The Trade Desk next year, and how does your restructuring position you to leverage those trends? - Vasily Karasyov (Cannonball Research, LLC)

2025Q3: We're seeing a tale of two cities, with some brands under pressure while others embrace data-driven marketing. There's a shift in scrutiny of walled gardens, and our platform is positioned to capitalize on this. There's a buyer's market, and large publishers rely on our platform. We're excited about 2026, anticipating a better environment for open Internet advertising and leveraging our restructuring to support this. - Jeffrey Green(CEO)

How will ad spend dynamics evolve in the remainder of the year given tariff uncertainties? How will this impact your Q3 guidance? - Vasily Karasyov (Cannonball Research)

2025Q2: Tariffs affect some of the largest advertisers, which are our main clients. Volatility impacts us, but programmatic stands out in volatile environments. The move to programmatic is accelerated by such conditions. We're confident in our position, with increased JBPs and flexible CTV upfront commitments. - Jeffrey Terry Green(CEO)

Contradiction Point 3

Google's Focus on the Open Internet

It involves differing opinions on Google's focus on the open internet and its implications for The Trade Desk's market position, which can directly impact strategic decisions and market positioning.

What impact might Google's antitrust lawsuits have on Trade Desk, and how are you and your advertisers preparing for potential industry changes? - Youssef Squali (Truist Securities, Inc.)

2025Q3: Google's antitrust problems are from the open Internet, and they'll focus more on owned and operated inventory. This will slow their advertising growth outside of search and AI. - Jeff Green(CEO)

If Google reduces focus on open internet businesses, what impact will this have on DSPs (like The Trade Desk), SSPs, and other open internet participants? - Vasily Karasyov (Cannonball Research)

2025Q1: Google's recent guilty verdicts in antitrust trials make the market fairer. Walled gardens are being put in check, benefiting the open internet. Competitors like Google and Amazon have less focus on open internet, which is positive for The Trade Desk. The market is becoming fairer, and we believe we can compete better in a fairer market. - Jeff Green(CEO)