Balance sheet analysis
The Trade Desk’s total assets were $4.9 billion as of December 31, 2023 ,compared with $4.4 billion as of December 31, 2022.
Total current assets were $4.3 billion as of December 31, 2023, accounting for 87.8% of total assets.
We could see that non-current was minimal.
Cash and cash equivalents were $895 million as of December 31, 2023, consisting of 18.3% of total assets.
Short-term investments, net were $485 million as of December 31, 2023, comprising 9.9% of total assets.
Current liabilities were $2.5 billion as of December 31, 2023.
The current ratio was 1.72 for 2023.
Total liabilities were $2.7 billion as of December 31, 2023.
The debt ratio was 61.4%.
The Trade Desk’s balance sheet was very healthy.
Profitability analysis
The company’s revenue was $1.95 billion, $1.6 billion and $1.2 billion in 2023, 2022 and 2021, respectively.
Revenue in 2022 was up 33.4% year-on-year.
Revenue in 2023 was up 22% year-on-year.
The company’s net income was $179 million, $53 million and $138 million in 2023, 2022 and 2021, respectively.
The net profit margin was 9.2%, 3.3% and 11.5% for 2023, 2022 and 2021, respectively.
Stock-based compensation was important.
Stock-based compensation was $491.6 million, $498.6 million and $337.4 million in 2023, 2022 and 2021, respectively.
Cash flow analysis
Net cash provided by operating activities was $598 million, $549 million and $379 million in 2023, 2022 and 2021, respectively.
We could see that the amount of stock-based compensation has been slightly less than that of net cash provided by operating activities over the past three years.
The amount of shares repurchased would be offset by stock-based compensation.
Repurchase of common stock was $647 million in 2023.
Conclusion
The Trade Desk’s balance sheet was healthy.
The company’s profitability was mediocre.
The stock-based compensation was a question, which reduced valuation for the company.
Now, The Trade Desk’s stock price is $85.83 per share, which is equivalent $41.97 billion in market cap.
We think that The Trade Desk is not a investing goal ,and it is expensive.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
The Trade Desk, Inc. (the “Company,” “we,” “our,” or “The Trade Desk”) offers a self-service, cloud-based ad-buying platform that empowers our clients to plan, manage, optimize and measure more expressive data-driven digital advertising campaigns. Our platform allows clients to execute integrated campaigns across ad formats and channels, including video (which includes connected television (“CTV”)), display, audio, digital-out-of-home, native and social, on a multitude of devices, such as computers, mobile devices, televisions and streaming devices. Our platform’s integrations with major inventory, publisher and data partners provide ad buyers reach and decisioning capabilities, and our enterprise application programming interfaces (“APIs”) enable our clients to customize and expand platform functionality.
