Exhibit 12.1
THE TRADE DESK, INC.
COMPUTATION OF RATIO OF EARNINGS TO FIXED
CHARGES
(in thousands)
| Year Ended December 31, | Nine Months Ended September 30, | |||||||||||||||
| 2016 | 2015 | 2014 | 2017 | |||||||||||||
Fixed charges: | ||||||||||||||||
Interest expense(1) | $ | 2,878 | $ | 1,141 | $ | 611 | $ | 1,290 | ||||||||
Estimated interest component of rent expense(2) | 1,598 | 733 | 400 | 2,331 | ||||||||||||
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Total fixed charges | $ | 4,476 | $ | 1,874 | $ | 1,011 | $ | 3,621 | ||||||||
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Earnings available for fixed charges: | ||||||||||||||||
Pre-tax income (loss) | $ | 43,834 | $ | 29,855 | $ | (943 | ) | $ | 35,589 | |||||||
Add: Fixed charges | 4,476 | 1,874 | 1,011 | 3,621 | ||||||||||||
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Total earnings available for fixed charges | $ | 48,310 | $ | 31,729 | $ | 68 | $ | 39,210 | ||||||||
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Ratio of earnings to fixed charges | 10.8 | 16.9 | — | (3) | 10.8 | |||||||||||
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Deficiency of earnings available to cover fixed charges | — | — | $ | (943 | ) | — | ||||||||||
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| (1) | Loss on extinguishment of debt of $197 and $232 was excluded from the years ended December 31, 2016 and 2014, respectively. |
| (2) | One third of rent expense was included in the calculation as it is a reasonable approximation of the interest component. |
| (3) | Earnings in the year ended December 31, 2014 were inadequate to cover fixed charges. Additional earnings of $943 in the year ended December 31, 2014 would have been necessary to bring the ratio for this period to 1.0. |
