# Trade Desk (TTD) Forecast Calculator

Interactive five-year financial forecast and DCF for Trade Desk. Adjust revenue growth, margins, capex, and WACC to update revenue, free cash flow, and enterprise value.

- Canonical: https://finamodel.com/companies/trade-desk/forecast
- Industry: Communications
- Forecast start year: 2026

## Historical data

| Year | Revenue | Free cash flow | EBITDA | Net income |
|---:|---:|---:|---:|---:|
| 2021 | 661058000 | 24512000 | 133858000 | 108318000 |
| 2022 | 836033000 | 331008000 | 172840000 | 242317000 |
| 2023 | 1196467000 | 323709000 | 167036000 | 137762000 |
| 2024 | 1577795000 | 464574000 | 168079000 | 53385000 |
| 2025 | 1946120000 | 551532000 | 280898000 | 178940000 |

## Frequently asked questions

### What is The Trade Desk and how does it generate revenue?

The Trade Desk is an independent, cloud-based demand-side platform (DSP) that empowers buyers of advertising to create, manage, and optimize data-driven digital advertising campaigns. The company operates as a single reporting segment, generating 100% of its revenue from platform fees, which are a percentage of the gross media spend transacted through its platform.

### What are the primary drivers of The Trade Desk's revenue growth?

The Trade Desk's revenue is primarily driven by the formula of Gross Ad Spend multiplied by its Take Rate. Key growth levers include the shift to Connected TV (CTV), retail media partnerships, and international expansion, though macroeconomic advertising slowdowns can act as headwinds.

### What is the assumed revenue growth rate and cost of goods sold percentage in The Trade Desk's financial model?

The financial model for The Trade Desk assumes a revenue growth rate of 20% (0.2) for its forecasts. The Cost of Goods Sold (COGS) is projected at approximately 20.03% of revenue within the model's assumptions.

### How does The Trade Desk's working capital profile impact its operating cash flow?

The Trade Desk acts as a clearinghouse, billing agencies for Gross Spend and paying publishers for ad inventory, which results in significant working capital swings. While generally positive, the timing of Q4 collections heavily dictates operating cash flow in Q1, making it a crucial aspect for financial analysis.

### What is The Trade Desk's typical capital expenditure as a percentage of revenue?

Historically, The Trade Desk's capital expenditure has been between 2-4% of revenue. This spending is almost entirely growth capex, focused on server capacity, capitalized software development, and investments in initiatives like the Ventura streaming TV OS and UID2 infrastructure.

### Can I download an Excel financial model for The Trade Desk, and what is its forecast horizon?

Yes, an Excel financial model for The Trade Desk is available for download. This model provides a forecast horizon spanning from fiscal year 2026 through fiscal year 2030, allowing for long-term financial analysis.