# EDGAR Filing Document

**Accession Number:** 0001671933
**File Stem:** 0001157523-23-000284
**Filing Date:** 2023-2
**Character Count:** 34455
**Document Hash:** fe950529d45300295fbf2a959340dc94
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001157523-23-000284.hdr.sgml**: 20230215

**ACCESSION NUMBER**: 0001157523-23-000284

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20230212

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Other Events

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230215

**DATE AS OF CHANGE**: 20230215

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Trade Desk, Inc.
- **CENTRAL INDEX KEY:** 0001671933
- **STANDARD INDUSTRIAL CLASSIFICATION:** SERVICES-COMPUTER PROGRAMMING, DATA PROCESSING, ETC. [7370]
- **IRS NUMBER:** 271887399
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-37879
- **FILM NUMBER:** 23633517

**BUSINESS ADDRESS:**
- **STREET 1:** 42 N. CHESTNUT STREET
- **CITY:** VENTURA
- **STATE:** CA
- **ZIP:** 93001
- **BUSINESS PHONE:** (805) 585-3434

**MAIL ADDRESS:**
- **STREET 1:** 42 N. CHESTNUT STREET
- **CITY:** VENTURA
- **STATE:** CA
- **ZIP:** 93001

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

### FORM 8-K

#### CURRENT REPORT

#### Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

#### Date of Report (Date of earliest event reported): February 12, 2023

#### THE TRADE DESK, INC.

#### (Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Delaware**<br>| **001-37879**<br>| **27-1887399**<br>|
| **(State or other jurisdiction of incorporation)** | **(Commission File Number)** | **(I.R.S. Employer Identification No.)** |

---

#### 42 N. Chestnut Street

#### Ventura, California 93001

#### (Address of principal executive offices) (Zip Code)
(805) 585-3434

#### (Registrant's telephone number, including area code)

#### Not Applicable

#### (Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol** | **Name of each exchange on which registered** |
| Class A Common Stock, par value $0.000001 per share<br>| TTD<br>| The Nasdaq Stock Market LLC<br>|

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

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| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.**  |

---

On February 15, 2023, The Trade Desk, Inc. (the "Company") issued a press release announcing its financial results for the quarter and year ended December 31, 2022. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in this Current Report on Form 8-K and Exhibit 99.1 attached hereto is intended to be furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.

---

| | |
|:---|:---|
| **Item 8.01** | **Other Events.**  |

---

On February 15, 2023, the Company issued a press release announcing that, on February 12, 2023, the Company's board of directors authorized and approved a share repurchase program pursuant to which the Company may purchase up to $700 million of its outstanding Class A Common Stock, par value $0.000001 per share (the "Class A Common Stock"). A copy of the press release is being furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Stock repurchases under the program may be made from time to time, in the open market, in privately negotiated transactions or otherwise, with the amount and timing of repurchases to be determined at the discretion of management of the Company, depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization.

The share repurchase program does not obligate the Company to acquire any particular amount of Class A Common Stock and may be modified, suspended or terminated at any time at the discretion of the Company's board of directors.

The Company expects to fund repurchases with existing cash and cash equivalents and short-term investments.

#### Forward-Looking Statements
This Current Report on Form 8-K contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to the Company's amount, timing and sources of funding for the share repurchase program. Any forward-looking statements contained in this Current Report on Form 8-K are based upon the Company's historical performance and its current plans, estimates and expectations, and are not a representation that such plans, estimates or expectations will be achieved. These forward-looking statements represent the Company's expectations as of the date of this Current Report on Form 8-K, and involve risks, uncertainties and assumptions. The actual results may differ materially from those anticipated in the forward-looking statements as a result of numerous factors, many of which are beyond the control of the Company, including changes in price and volume and the volatility of the Company's Class A Common Stock, adverse developments affecting prices and trading of exchange-traded securities, including securities quoted on the Nasdaq Global Market, unexpected or otherwise unplanned or alternative requirements with respect to the capital investments of the Company and the risks and uncertainties disclosed in the Company's reports filed from time to time with the Securities and Exchange Commission, including its most recent Form 10-K and any subsequent filings on Forms 10-Q or 8-K, available at www.sec.gov. The Company does not intend to update any forward-looking statement contained in this Current Report on Form 8-K to reflect events or circumstances arising after the date hereof.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

---

(d) The following exhibits are being filed herewith:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [99.1](a53324909_ex991.htm)<br>| [Press release of the Company, dated February 15, 2023.](a53324909_ex991.htm) |
| 104 <br>| Cover Page Interactive Data File (formatted as Inline XBRL) |

---

------

#### SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | THE TRADE DESK, INC.<br> (Registrant) | THE TRADE DESK, INC.<br> (Registrant) |
| Date: February 15, 2023 |  |  |
|  | By: | /s/ Blake J. Grayson |
|  |  | Blake J. Grayson |
|  |  | Chief Financial Officer<br> (Principal Financial and Accounting Officer) |

---

## Exhibit 99.1

**Exhibit 99.1**

<br> **** 

<br> # **The Trade Desk Reports Fourth Quarter and Fiscal Year 2022 Financial Results; Announces $700 Million Share Repurchase Program** 
 ***Q4 revenue grew 24% year over year to $491 million. 2022 revenue increased 32% year over year to $1,578 million.*** 

 ***The Trade Desk also announced its board of directors' authorization to repurchase up to $700 million of its Class A common stock.*** 

LOS ANGELES--(BUSINESS WIRE)--February 15, 2023--The Trade Desk, Inc. ("The Trade Desk" or the "Company") (NASDAQ: TTD), a provider of a global technology platform for buyers of advertising, today announced financial results for its fourth quarter and fiscal year ended December 31, 2022.

"The Trade Desk outpaced nearly all areas of digital advertising in 2022, with 32% revenue growth year over year, and a record $491 million of revenue in the fourth quarter alone. This performance was underscored by significant profitability and cash flow. In an unpredictable macro environment, our growing relationships with agencies and brands is testament to the value of the open internet over the limitations of walled gardens," said Jeff Green, founder and CEO of The Trade Desk. "More of the world's leading advertisers are gravitating to fast-growing channels such as Connected TV (CTV) and retail media, which offer premium value at scale. They are leveraging new identity tools, such as UID2, which allow them to make the most of their first-party data in a privacy-safe manner. These trends will accelerate in 2023 and we will continue to invest in our platform to help advertisers drive maximum value from these opportunities."

 **<u>Fourth Quarter and Full Year 2022 Financial Highlights:</u>**

The following table summarizes the Company's consolidated financial results for the quarters and fiscal years ended December 31, 2022 and 2021 ($ in millions, except per share amounts):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> December 31,**  | **Three Months Ended <br> December 31,**  | **Year Ended <br> December 31,**  | **Year Ended <br> December 31,**  |
|  | **2022**  | **2021**  | **2022**  | **2021**  |
| **GAAP Results**  |  |  |  |  |
| Revenue  | $491  | $396  | $1578  | $1196  |
| Increase in revenue year over year  | 24% | 24% | 32% | 43% |
| Net income  | $71  | $8  | $53  | $138  |
| GAAP diluted earnings per share  | $0.14  | $0.02  | $0.11  | $0.28  |
| **Non-GAAP Results**  |  |  |  |  |
| Adjusted EBITDA  | $245  | $192  | $668  | $503  |
| Adjusted EBITDA margin  | 50% | 48% | 42% | 42% |
| Non-GAAP net income  | $190  | $208  | $522  | $456  |
| Non-GAAP diluted earnings per share  | $0.38  | $0.42  | $1.04  | $0.91  |

---

------

 **<u>Fourth Quarter and 2022 Recent Business Highlights</u>**

* **Continued Share Gains:** 2022 gross spend of nearly $7.8 billion 

* **Strong Customer Retention:** Customer retention remained over 95% during the fourth quarter, as it has for the past nine consecutive years. 

* **Continued Collaboration and Support for Unified ID 2.0:** The Trade Desk is building support for Unified ID 2.0 (UID2), an industry-wide approach to identity that aims to preserve the value of relevant advertising on the open
 internet without reliance upon third-party cookies, while giving consumers transparency and control over their data. Recent partnerships and pledges of integration and support include:
 
 Leading advertisers running campaigns on Disney's UID2-powered audience graph report results 12 times more effective in reaching target audience. 
 Paramount Advertising announced its integration with UID2 to scale identity on its CTV inventory. 
 DRAKO, location-based marketing and analytics services company, announced its support of UID2. 

* **Launched Galileo:** Galileo can enable advertisers to onboard and activate their first-party data quickly and easily. It incorporates:
 
 Seamless and direct onboarding integrations with all major customer relationship management ("CRM"), customer data platform ("CDP"), and other data and clean room providers, allowing advertisers to instantly begin matching audiences
 using UID2. 
 Audience matching across all publishers, platforms, devices, and channels — including CTV — which provides a true omnichannel identity environment. 
 Objective reporting and measurement of identity matching and advertising performance. 

* **Industry Recognition (2022):**

 Customers' Choice for Ad Tech on Gartner® Peer Insights™ 
 BIG Innovation Award for Technology Product (Solimar) 
 Business Insider's Hottest Ad Tech Companies of 2022 
 Sales and Marketing Technology Awards: Product of the Year for User Optimization Experience 
 Crain's 100 Best Places to Work in NYC 2022 (9th consecutive year) 
 Stevie Awards for Great Employers - Employer of the Year, Computer Software 
 Stevie Awards for Customer Service Success - Silver, Technology Industries 
 Forbes Global 2000 
 Samantha Jacobson, Chief Strategy Officer, named to AdAge 40 under 40 
 Samantha Jacobson, Chief Strategy Officer, named Adweek's Digital & Tech Executive of the Year 
 Jed Dederick, Chief Client Officer, named to Adweek 50 List 

 **<u>Financial Guidance:</u>**

First Quarter 2023 outlook summary:

* Revenue at least $363 million 

* Adjusted EBITDA of approximately $78 million 

The Company has not provided an outlook for GAAP Net Income or reconciliation of Adjusted EBITDA guidance to Net Income, the closest corresponding U.S. GAAP measure, because Net Income outlook is not available without unreasonable efforts on a forward-looking basis due to the variability and complexity with respect to the charges excluded from these non-GAAP measures; in particular, the measures and effects of our stock-based compensation expense that are directly impacted by unpredictable fluctuations in our share price. The Company expects the variability of the above charges could have a significant and potentially unpredictable impact on our future U.S. GAAP financial results.

------

 **<u>Use of Non-GAAP Financial Information</u>**

Included within this press release are the non-GAAP financial measures of Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Diluted EPS that supplement the Consolidated Statements of Operations of the Company prepared under generally accepted accounting principles ("GAAP"). Adjusted EBITDA is earnings before interest expense (income), net; provision for (benefit from) income taxes; depreciation and amortization; and stock-based compensation. Non-GAAP Net Income excludes charges and the related income tax effects for stock-based compensation. Tax rates on the tax-deductible portions of the stock-based compensation expense approximating 25% to 30% have been used in the computation of non-GAAP Net Income and non-GAAP Diluted EPS. Reconciliations of GAAP to non-GAAP amounts for the periods presented herein are provided in schedules accompanying this release and should be considered together with the Consolidated Statements of Operations. These non-GAAP measures are not meant as a substitute for GAAP, but are included solely for informational and comparative purposes. The Company's management believes that this information can assist investors in evaluating the Company's operational trends, financial performance and cash-generating capacity. Management believes these non-GAAP measures allow investors to evaluate the Company's financial performance using some of the same measures as management. However, the non-GAAP financial measures should not be regarded as a replacement for or superior to corresponding, similarly captioned, GAAP measures and may be different from non-GAAP financial measures used by other companies.

 **<u>Fourth Quarter and Fiscal Year 2022 Financial Results Webcast and Conference Call Details</u>**

* **When:** February 15, 2023 at 5:00 A.M. Pacific Time (8:00 A.M. Eastern Time). 

* **Webcast:** A live webcast of the call can be accessed from the Investor Relations section of The Trade Desk's website at http://investors.thetradedesk.com/. Following the call, a replay will be available on the Company's website. 

* **Dial-in:** To access the call via telephone in North America, please dial 888-506-0062. For callers outside the United States, please dial 1-973-528-0011. Participants should reference the conference call ID code "921638" after
 dialing in. 

* **Audio replay:** An audio replay of the call will be available beginning about two hours after the call. To listen to the replay in the United States, please dial 877-481-4010 (replay code: 47509). Outside the United States, please
 dial 1-919-882-2331 (replay code: 47509). The audio replay will be available via telephone until February 22, 2023. 

The Trade Desk, Inc. uses its Investor Relations website (http://investors.thetradedesk.com/), its Twitter feed (@TheTradeDesk), LinkedIn page (https://www.linkedin.com/company/the-trade-desk/), Facebook page (https://www.facebook.com/TheTradeDesk/), Jeff Green's Twitter feed (@jefftgreen) and LinkedIn profile (https://www.linkedin.com/in/jefftgreen/) as a means of disclosing information about the company and for complying with its disclosure obligations under Regulation FD. The information that is posted through these channels may be deemed material. Accordingly, investors should monitor these channels in addition to The Trade Desk's press releases, SEC filings, public conference calls and webcasts.

 **Share Repurchase Program**

The Company also announced that its board of directors approved a share repurchase program with authorization to purchase up to $700 million of its Class A Common Stock. The new share repurchase program is designed to help offset the impact of future share dilution from employee stock issuances. Repurchases under the program may be made in the open market, in privately negotiated transactions or otherwise, with the amount and timing of repurchases to be determined at the Company's discretion, depending on market conditions and corporate needs. Open market repurchases will be structured to occur in accordance with applicable federal securities laws, including within the pricing and volume requirements of Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company may also, from time to time, enter into Rule 10b5-1 plans to facilitate repurchases of its shares under this authorization. This program does not obligate the Company to acquire any particular amount of Class A Common Stock, and may be modified, suspended or terminated at any time at the discretion of the Company's board of directors.

The Company expects to fund repurchases with existing cash and cash equivalents and short-term investments. As of December 31, 2022, The Trade Desk had cash and cash equivalents and short-term investments of $1,447 million.

------

 **About The Trade Desk**

The Trade Desk<sup>™</sup> is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize digital advertising campaigns across ad formats and devices. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across North America, Europe, and Asia Pacific. To learn more, visit thetradedesk.com or follow us on Facebook, Twitter, LinkedIn and YouTube.

 **Forward-Looking Statements**

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to expectations concerning matters that (a) are not historical facts, (b) predict or forecast future events or results, or (c) embody assumptions that may prove to have been inaccurate, including statements relating to the industry and market trends, the Company's financial targets, such as revenue and Adjusted EBITDA and the amount, timing, and sources of funding for the Company's share repurchase program. When words such as "believe," "expect," "anticipate," "will," "outlook" or similar expressions are used, the Company is making forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give readers any assurance that such expectations will prove correct. These forward-looking statements involve risks, uncertainties and assumptions, including those related to the Company's relatively limited operating history, which makes it difficult to evaluate the Company's business and prospects, the market for programmatic advertising developing slower or differently than the Company's expectations, the demands and expectations of clients, the ability to attract and retain clients, changes in price and volume and the volatility of the Company's Class A Common Stock and adverse developments affecting prices and trading of exchange-traded securities, including securities quoted on the Nasdaq Global Market, unexpected or otherwise unplanned or alternative requirements with respect to our capital investments. The actual results may differ materially from those anticipated in the forward-looking statements as a result of numerous factors, many of which are beyond the control of the Company. These are disclosed in the Company's reports filed from time to time with the Securities and Exchange Commission, including its most recent Form 10-K and any subsequent filings on Forms 10-Q or 8-K, available at www.sec.gov. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company does not intend to update any forward-looking statement contained in this press release to reflect events or circumstances arising after the date hereof.

------

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| | | | | |
|:---|:---|:---|:---|:---|
| **THE TRADE DESK, INC.**  | **THE TRADE DESK, INC.**  | **THE TRADE DESK, INC.**  | **THE TRADE DESK, INC.**  | **THE TRADE DESK, INC.**  |
| **CONSOLIDATED STATEMENTS OF OPERATIONS**  | **CONSOLIDATED STATEMENTS OF OPERATIONS**  | **CONSOLIDATED STATEMENTS OF OPERATIONS**  | **CONSOLIDATED STATEMENTS OF OPERATIONS**  | **CONSOLIDATED STATEMENTS OF OPERATIONS**  |
| **(Amounts in thousands, except per share amounts)**  | **(Amounts in thousands, except per share amounts)**  | **(Amounts in thousands, except per share amounts)**  | **(Amounts in thousands, except per share amounts)**  | **(Amounts in thousands, except per share amounts)**  |
| **(Unaudited)**  | **(Unaudited)**  | **(Unaudited)**  | **(Unaudited)**  | **(Unaudited)**  |
|  | **Three Months Ended** <br> **December 31,**  | **Three Months Ended** <br> **December 31,**  | **Year Ended** <br> **December 31,**  | **Year Ended** <br> **December 31,**  |
|  | **2022**  | **2021**  | **2022**  | **2021**  |
| Revenue  | $490737  | $395598  | $1577795  | $1196467  |
| Operating expenses <sup>(1)</sup>:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Platform operations  | 79619  | 66845  | 281123  | 221554  |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales and marketing  | 92829  | 72501  | 337975  | 249298  |
| &nbsp;&nbsp;&nbsp;&nbsp; Technology and development  | 84479  | 62836  | 319876  | 226137  |
| &nbsp;&nbsp;&nbsp;&nbsp; General and administrative  | 133650  | 218777  | 525167  | 374661  |
| Total operating expenses  | 390577  | 420959  | 1464141  | 1071650  |
| Income (loss) from operations  | 100160  | (25361 ) | 113654  | 124817  |
| Total other expense (income), net  | (11960 )  | 1221  | (13716 )  | 2781  |
| Income (loss) before income taxes  | 112120  | (26582 ) | 127370  | 122036  |
| Provision for (benefit from) income taxes  | 40933  | (34621 )  | 73985  | (15726 )  |
| Net income  | $71187  | $8039  | $53385  | $137762  |
| Earnings per share:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic  | $0.15  | $0.02  | $0.11  | $0.29  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted  | $0.14  | $0.02  | $0.11  | $0.28  |
| Weighted-average shares outstanding:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Basic  | 489217  | 480873  | 486937  | 476851  |
| &nbsp;&nbsp;&nbsp;&nbsp; Diluted  | 500432  | 500314  | 499925  | 498540  |

---

___________________________ <br> <sup>(1)</sup> <br> Includes stock-based compensation expense as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **STOCK-BASED COMPENSATION EXPENSE**  | **STOCK-BASED COMPENSATION EXPENSE**  | **STOCK-BASED COMPENSATION EXPENSE**  | **STOCK-BASED COMPENSATION EXPENSE**  | **STOCK-BASED COMPENSATION EXPENSE**  |
| **(Amounts in thousands)**  | **(Amounts in thousands)**  | **(Amounts in thousands)**  | **(Amounts in thousands)**  | **(Amounts in thousands)**  |
| **(Unaudited)**  | **(Unaudited)**  | **(Unaudited)**  | **(Unaudited)**  | **(Unaudited)**  |
|  | **Three Months Ended** <br> **December 31,**  | **Three Months Ended** <br> **December 31,**  | **Year Ended** <br> **December 31,**  | **Year Ended** <br> **December 31,**  |
|  | **2022**  | **2021**  | **2022**  | **2021**  |
| Platform operations  | $4031  | $4289  | $18285  | $15913  |
| Sales and marketing  | 15724  | 13309  | 64442  | 50671  |
| Technology and development  | 27564  | 16454  | 94822  | 57791  |
| General and administrative <sup>(1)</sup>  | 80212  | 171351  | 321093  | 213038  |
| Total  | $127531  | $205403  | $498642  | $337413  |

---

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| | |
|:---|:---|
| ___________________________ | ___________________________ |
| <sup>(1)</sup>  | Includes stock-based compensation expense related to a long-term CEO performance grant of $66 million and $262 million for the three and twelve months ended December 31, 2022, respectively, and $158 million for the three and twelve months ended December 31, 2021.  |

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| | | |
|:---|:---|:---|
| **THE TRADE DESK, INC.** | **THE TRADE DESK, INC.** | **THE TRADE DESK, INC.** |
| **CONSOLIDATED BALANCE SHEETS**  | **CONSOLIDATED BALANCE SHEETS**  | **CONSOLIDATED BALANCE SHEETS**  |
| **(Amounts in thousands)**  | **(Amounts in thousands)**  | **(Amounts in thousands)**  |
| **(Unaudited)**  | **(Unaudited)**  | **(Unaudited)**  |
|  | **As of December 31,** <br> **2022**  | **As of December 31,** <br> **2021**  |
| **ASSETS**  |  |  |
| Current assets:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents  | $1030506  | $754154  |
| &nbsp;&nbsp;&nbsp;&nbsp; Short-term investments, net  | 416080  | 204625  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net  | 2347195  | 2020720  |
| &nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets  | 51836  | 112150  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets  | 3845617  | 3091649  |
| Property and equipment, net  | 173759  | 135856  |
| Operating lease assets  | 220396  | 234091  |
| Deferred income taxes  | 94028  | 68244  |
| Other assets, non-current  | 46879  | 47500  |
| Total assets  | $4380679  | $3577340  |
| **LIABILITIES AND STOCKHOLDERS' EQUITY**  |  |  |
| Current liabilities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accounts payable  | $1871419  | $1655684  |
| &nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other current liabilities  | 105474  | 101472  |
| &nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities  | 52430  | 46149  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities  | 2029323  | 1803305  |
| Operating lease liabilities, non-current  | 208527  | 238449  |
| Other liabilities, non-current  | 27490  | 8280  |
| Total liabilities  | 2265340  | 2050034  |
| Stockholders' equity:  |  |  |
| Preferred stock  | —  | —  |
| Common stock  | —  | —  |
| Additional paid-in capital  | 1449825  | 915177  |
| Retained earnings  | 665514  | 612129  |
| Total stockholders' equity  | 2115339  | 1527306  |
| Total liabilities and stockholders' equity  | $4380679  | $3577340  |

---

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| | | |
|:---|:---|:---|
| **THE TRADE DESK, INC.** | **THE TRADE DESK, INC.** | **THE TRADE DESK, INC.** |
| **CONSOLIDATED STATEMENTS OF CASH FLOWS**  | **CONSOLIDATED STATEMENTS OF CASH FLOWS**  | **CONSOLIDATED STATEMENTS OF CASH FLOWS**  |
| **(Amounts in thousands)**  | **(Amounts in thousands)**  | **(Amounts in thousands)**  |
| **(Unaudited)**  | **(Unaudited)**  | **(Unaudited)**  |
|  | **Year Ended December 31,**  | **Year Ended December 31,**  |
|  | **2022**  | **2021**  |
| OPERATING ACTIVITIES:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Net income  | $53385  | $137762  |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustments to reconcile net income to net cash provided by operating activities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization  | 54425  | 42219  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation  | 498642  | 337413  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Noncash lease expense  | 44115  | 40315  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Allowance for credit losses on accounts receivable  | 3203  | 1456  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes  | (11507 ) | (16777 ) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other  | 622  | 5803  |
| &nbsp;&nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable  | (291747 ) | (444342 ) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Prepaid expenses and other current and non-current assets  | 50655  | 1648  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable  | 187119  | 309410  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accrued expenses and other current and non-current liabilities  | 8168  | 7596  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities  | (48346 )  | (43990 )  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by operating activities  | 548734  | 378513  |
| INVESTING ACTIVITIES:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchases of investments  | (553295 ) | (278387 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Sales of investments  | 1977  | 4539  |
| &nbsp;&nbsp;&nbsp;&nbsp; Maturities of investments  | 338829  | 253444  |
| &nbsp;&nbsp;&nbsp;&nbsp; Purchases of property and equipment  | (84160 ) | (54804 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Capitalized software development costs  | (7725 ) | (5169 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Business acquisition  | —  | (13261 )  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash used in investing activities  | (304374 )  | (93638 )  |
| FINANCING ACTIVITIES:  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Payment of debt financing costs  | —  | (1924 ) |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from exercise of stock options  | 47525  | 61476  |
| &nbsp;&nbsp;&nbsp;&nbsp; Proceeds from employee stock purchase plan  | 33062  | 29229  |
| &nbsp;&nbsp;&nbsp;&nbsp; Taxes paid related to net settlement of restricted stock awards  | (48595 )  | (56855 )  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net cash provided by financing activities  | 31992  | 31926  |
| Increase in cash and cash equivalents  | 276352  | 316801  |
| Cash and cash equivalents—Beginning of year  | 754154  | 437353  |
| Cash and cash equivalents—End of year  | $1030506  | $754154  |

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 **Non-GAAP Financial Metrics** <br> (Amounts in thousands, except per share amounts)

The following tables show the Company's non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended <br> December 31,**  | **Three Months Ended <br> December 31,**  | **Year Ended <br> December 31,**  | **Year Ended <br> December 31,**  |
|  | **2022**  | **2021**  | **2022**  | **2021**  |
| Net income  | $71187  | $8039  | $53385  | $137762  |
| Add back:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization expense  | 16844  | 12250  | 54425  | 42219  |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense  | 127531  | 205403  | 498642  | 337413  |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest expense (income), net  | (11434 ) | 474  | (12755 ) | 1030  |
| &nbsp;&nbsp;&nbsp;&nbsp; Provision for (benefit from) income taxes  | 40933  | (34621 )  | 73985  | (15726 )  |
| Adjusted EBITDA  | $245061  | $191545  | $667682  | $502698  |
|  | **Three Months Ended <br> December 31,**  | **Three Months Ended <br> December 31,**  | **Year Ended <br> December 31,**  | **Year Ended <br> December 31,**  |
|  | **2022**  | **2021**  | **2022**  | **2021**  |
| GAAP net income  | $71187  | $8039  | $53385  | $137762  |
| Add back (deduct):  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Stock-based compensation expense  | 127531  | 205403  | 498642  | 337413  |
| &nbsp;&nbsp;&nbsp;&nbsp; Adjustment for income taxes  | (8576 )  | (5314 )  | (29995 )  | (19619 )  |
| Non-GAAP net income  | $190142  | $208128  | $522032  | $455556  |
| GAAP diluted earnings per share  | $0.14  | $0.02  | $0.11  | $0.28  |
| GAAP weighted-average shares outstanding—diluted  | 500432  | 500314  | 499925  | 498540  |
| Non-GAAP diluted earnings per share  | $0.38  | $0.42  | $1.04  | $0.91  |
| Non-GAAP weighted-average shares used in computing Non-GAAP earnings per share, diluted  | 500432  | 500314  | 499925  | 498540  |

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## Contacts
 **Investors** <br> Jake Graves <br> Manager, Investor Relations <br> The Trade Desk <br> ir@thetradedesk.com<br> 312-620-0806 <br>**Media** <br> Melinda Zurich <br> VP, Communications <br> The Trade Desk <br> melinda.zurich@thetradedesk.com<br> 201-320-9398

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