- Revenue Growth: Q2 2025 revenue reached $694M, reflecting 19% YoY growth driven by innovation and client value.
- CTV Momentum: Connected TV remains the fastest-growing channel with no slowdown, fueling client acquisition and retention.
- Kokai Adoption: Clients using Kokai report up to 73% improvement in cost per acquisition, with full adoption expected by year-end.
- Joint Business Plans (JBPs): Live JBPs hit an all-time high (~100 active), growing faster than overall platform spend.
- Underperforming Segments: Home/garden (8% of revenue) and style/fashion (4%) face seasonal softness, per CFO Laura Schenkein.
Strong Growth and Innovation
The company's growth is driven by its ability to win more business with both new and existing customers, signing more multi-year joint business plans (JBPs) than ever before. The number of live JBPs is at an all-time high, with nearly 100 JBPs in progress. CEO Jeff Green emphasized the company's mission, vision, and collective opportunity, noting that global advertising is a trillion-dollar industry up for grabs, and AI is changing everything, creating new opportunities.
Advancing Objectivity and Measurement
The company is also focused on advancing objectivity in everything it does, particularly in the area of measurement, where it is partnering with leaders such as Instacart and Ocado to provide more granular data on actual consumer purchases. This focus on objectivity and measurement is a key differentiator for The Trade Desk, separating it from walled gardens like Amazon.
Leadership and Strategy
The company has strengthened its leadership team, with Vivek Kundra joining as COO and Alex Kayyal joining as CFO. Green emphasized the company's strategy, noting that the goal is to define clearly the category of a DSP, with database decisioning and measurement at the core of its offering. The company's dual-class share structure has been essential in maintaining a long-term North Star orientation and has allowed for transformative innovations like UID2, CTV, and retail media.
Competitive Landscape
In terms of the competitive landscape, The Trade Desk's strategy remains unchanged, focused on giving marketers the power and tools to own and control their own future. Amazon's advertising efforts are not seen as a significant threat, as walled gardens are best suited to buy their own inventory with their own data, and their bias makes it hard for them to buy across the open Internet in a truly objective way. As Green noted, "Amazon is not a competitor in the open internet advertising space."
Valuation
With a strong growth profile and innovative products, The Trade Desk's valuation metrics are reflective of its strong performance. The company's P/E Ratio is 65.13, P/B Ratio is 9.88, and P/S Ratio is 10.32, indicating that the market is pricing in continued growth and innovation. The company's ROIC is 11.23%, and ROE is 15.41%, indicating strong profitability and return on investment.