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- **Revenue Surge**: Q3 revenue up 18% YoY to $739M, with CTV driving 50% of video spend. Ex-political growth 22%, outpacing peers.
- **AI-Driven Innovation**: Kokai platform delivers 26% better CPAs, 94% reach improvement. New products like Audience Unlimited and OpenPath enhance supply chain transparency.
- **Leadership Restructuring**: New execs drive operational rigor, JBP pipeline worth billions, and 43% EBITDA margin.
- **Q4 Outlook**: $840M revenue (18.5% YoY ex-political), $375M EBITDA, with focus on international and mid-market growth.
- **Competitive Edge**: TTD's open Internet focus captures 66% of consumer digital time vs. 10% of advertiser budgets, positioning for long-term share gain.

**【CEO Summary Section】**
- **Revenue Growth**: Q3 revenue grew 18% YoY to $739M, excluding political spend, growth was 22%. CTV remains the fastest-growing channel, contributing 50% of video revenue.
- **AI and Product Innovation**: Kokai AI platform delivered 26% better CPAs, 58% better CTR, and 94% better reach. New products like Audience Unlimited, OpenPath, and Deal Desk aim to enhance supply chain transparency and efficiency.
- **Leadership and Restructuring**: Hired new COO, CFO, and CRO to drive operational rigor. Streamlined go-to-market strategies, improving JBP (Joint Business Plan) execution and client retention.
- **Market Positioning**: Emphasized TTD's role as an objective DSP in a buyer's market, contrasting with walled gardens. Highlighted premium content consumption on the open Internet (66% of digital time) versus advertiser budgets (minority allocated to open Internet).

**【CFO Financial Commentary】**
- **Financial Highlights**: Adjusted EBITDA of $317M (43% margin), free cash flow of $155M, and $1.4B cash balance. Q4 revenue guidance of $840M (18.5% YoY ex-political), with $375M EBITDA.
- **Channel Growth**: CTV and audio channels growing faster than overall business. Mobile (30% share) and display (low double-digit) stable, while international growth outpaces North America (13% vs. 87% share).
- **Capital Allocation**: $310M share buybacks in Q3, with $500M new authorization. Focus on reducing dilution and returning capital to shareholders.

**【Q&A Key Highlights】**
- **Competition and Strategy**: Jeff clarified TTD's focus on open Internet vs. Amazon/Google's owned inventory. Discussed AI's minimal impact on inventory but emphasized long-term opportunities in search-like ads. Alex highlighted Q4 guidance confidence despite macro concerns, citing JBP pipeline and product adoption.
- **AI and Inventory Impact**: Jeff noted AI reduces ad density, benefiting premium publishers. Kokai adoption driving 43% CTR improvements. Alex saw no macro risks, attributing guidance to consistent trends.
- **Product Priorities**: Kokai, Audience Unlimited, and Deal Desk highlighted as key growth drivers. Kokai's 35% better deal performance vs. Solimar showcased AI's value in forward markets.


The Trade Desk, Inc. (TTD) Q3 2025 Earnings Call Transcript

Revenue

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Operating Expenses

Selling, General and Administrative Expenses

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TTD

TTD fundamentals

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