Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 30, 2018 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | TTD | |
Entity Registrant Name | TRADE DESK, INC. | |
Entity Central Index Key | 1,671,933 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 34,284,197 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 7,837,916 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 138,952 | $ 155,950 |
Accounts receivable, net | 556,733 | 599,565 |
Prepaid expenses and other current assets | 10,837 | 10,298 |
TOTAL CURRENT ASSETS | 706,522 | 765,813 |
Property and equipment, net | 18,046 | 17,405 |
Deferred income taxes | 3,359 | 3,359 |
Other assets, non-current | 11,129 | 10,587 |
TOTAL ASSETS | 739,056 | 797,164 |
Current liabilities: | ||
Accounts payable | 440,684 | 490,377 |
Accrued expenses and other current liabilities | 29,057 | 28,155 |
TOTAL CURRENT LIABILITIES | 469,741 | 518,532 |
Debt, net | 27,000 | |
Other liabilities, non-current | 6,384 | 6,049 |
TOTAL LIABILITIES | 476,125 | 551,581 |
Commitments and contingencies (Note 9) | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock, par value $0.000001; 100,000 shares authorized, zero shares issued and outstanding as of March 31, 2018 and December 31, 2017 | ||
Common stock, par value $0.000001; 1,000,000 Class A shares authorized as of March 31, 2018 and December 31, 2017; 34,208 and 32,486 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively; 95,000 Class B shares authorized as of March 31, 2018 and December 31, 2017; 7,861 and 9,155 shares issued and outstanding as of March 31, 2018 and December 31, 2017, respectively | 0 | 0 |
Additional paid-in capital | 217,881 | 209,603 |
Retained earnings | 45,050 | 35,980 |
TOTAL STOCKHOLDERS’ EQUITY | 262,931 | 245,583 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 739,056 | $ 797,164 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Preferred stock | ||
Preferred stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 |
Preferred stock, authorized shares | 100,000,000 | 100,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock | ||
Common stock, par value (in dollars per share) | $ 0.000001 | $ 0.000001 |
Class A common stock | ||
Common stock | ||
Common stock, authorized shares | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 34,208,000 | 32,486,000 |
Common stock, shares outstanding | 34,208,000 | 32,486,000 |
Class B common stock | ||
Common stock | ||
Common stock, authorized shares | 95,000,000 | 95,000,000 |
Common stock, shares issued | 7,861,000 | 9,155,000 |
Common stock, shares outstanding | 7,861,000 | 9,155,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 85,668 | $ 53,352 |
Operating expenses: | ||
Platform operations | 22,897 | 12,549 |
Sales and marketing | 16,030 | 12,476 |
Technology and development | 17,701 | 10,461 |
General and administrative | 19,110 | 15,930 |
Total operating expenses | 75,738 | 51,416 |
Income from operations | 9,930 | 1,936 |
Other expense: | ||
Interest expense, net | 156 | 364 |
Foreign currency exchange loss, net | 544 | 428 |
Total other expense, net | 700 | 792 |
Income before income taxes | 9,230 | 1,144 |
Provision for (benefit from) income taxes | 160 | (3,765) |
Net income | $ 9,070 | $ 4,909 |
Earnings per share: | ||
Basic | $ 0.22 | $ 0.13 |
Diluted | $ 0.20 | $ 0.11 |
Weighted average shares outstanding: | ||
Basic | 41,629 | 39,167 |
Diluted | 44,543 | 43,557 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
OPERATING ACTIVITIES: | ||
Net income | $ 9,070 | $ 4,909 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,251 | 1,493 |
Stock-based compensation | 7,283 | 2,322 |
Bad debt expense | 369 | 3,347 |
Other | (10) | (274) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 42,387 | 59,190 |
Prepaid expenses and other assets | (775) | (5,017) |
Accounts payable | (49,698) | (87,940) |
Accrued expenses and other liabilities | 930 | (770) |
Net cash provided by (used in) operating activities | 11,807 | (22,740) |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (1,798) | (3,602) |
Capitalized software development costs | (858) | (647) |
Net cash used in investing activities | (2,656) | (4,249) |
FINANCING ACTIVITIES: | ||
Repayment on line of credit | (27,000) | |
Payment of financing obligations | (113) | |
Proceeds from exercise of stock options | 1,212 | 275 |
Taxes paid related to net settlement of restricted stock awards | (361) | |
Net cash provided by (used in) financing activities | (26,149) | 162 |
Decrease in cash and cash equivalents | (16,998) | (26,827) |
Cash and cash equivalents—Beginning of period | 155,950 | 133,400 |
Cash and cash equivalents—End of period | 138,952 | 106,573 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Capitalized assets financed by accounts payable | 813 | 1,687 |
Tenant improvements paid by lessor | 640 | |
Asset retirement obligation | 341 | |
Stock-based compensation included in capitalized software development costs | $ 144 | $ 45 |
Nature of Operations
Nature of Operations | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Operations | Note 1—Nature of Operations The Trade Desk, Inc. (the “Company”) was formed in November 2009 as a Delaware corporation. The Company is headquartered in Ventura, California and has offices in various cities in North America, Europe, Asia and Australia. The Company is a global technology company that empowers ad buyers by providing a self-service omnichannel software platform that enables its clients to purchase and manage data-driven digital advertising campaigns across various advertising channels and formats. Risks The Company is subject to certain business risks, including dependence on key employees, competition, market acceptance of the Company’s platform, ability to source demand from buyers of advertising inventory, availability of equity or debt financings and dependence on growth to achieve its business plan. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Note 2—Basis of Presentation and Summary of Significant Accounting Policies The accompanying condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and are unaudited. Certain information and disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted. The condensed consolidated balance sheet as of December 31, 2017 was derived from audited financial statements, but does not include all disclosures required by GAAP. On January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) Except for the adoption of ASU 2014-09, there have been no changes to the Company’s accounting policies and these unaudited interim condensed consolidated financial statements have been prepared on a basis consistent with that used to prepare the Company’s audited annual consolidated financial statements for the year ended December 31, 2017, and include, in the opinion of management, all adjustments, consisting of normal recurring items, necessary for the fair statement of the condensed consolidated financial statements. The operating results for the three months ended March 31, 2018 are not necessarily indicative of the results expected for the full year ending December 31, 2018. Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these estimates under different assumptions or circumstances. Revenue Recognition The Company determines revenue recognition through the following steps: • Identification of a contract with a customer • Identification of the performance obligation(s) in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligation(s) in the contract • Recognition of revenue when or as the performance obligation(s) are satisfied The Company maintains agreements with each client and supplier in the form of master service agreements, which set out the terms of the relationship and access to the Company’s platform. The Company’s performance obligation is to provide the use of its platform to clients to develop ad campaigns and select the advertising inventory, third-party data and other add-on features. The Company charges clients a platform fee, based on a percentage of a client’s purchases through the platform, and the transaction price is determined based on the consideration to which it expects to be entitled in exchange for the completion of a transaction, that is, when a bid is won. The Company reports revenue net of amounts it pays suppliers for the cost of advertising inventory, data and add-on features. The determination of whether the Company is the principal or agent, and hence whether to report revenue on a gross basis for the amount of the advertising inventory, third-party data and other add-on features the clients purchase using the platform plus the Company’s platform fees or on a net basis for the amount of platform fees charged to the client, requires judgment. The Company determined that it is not primarily responsible for the purchase of advertising inventory, third-party data and other add-on features, but rather, it is primarily responsible to provide a platform that enables clients to bid on advertising inventory, and use data and other add-on features in designing and executing their campaigns. The Company does not control the inventory, third party data and other add-on features prior to the purchase by the client, and it does not have pricing latitude with respect to the cost of advertising inventory, third-party data and other add-on features purchased by clients through its platform. The platform fee the Company charges clients is a percentage of their purchases through its platform, similar to a commission, and the platform fee is not contingent on the results of an advertising campaign. Based on these and other factors, the Company determined that it is not the principal in the purchase and sale of advertising inventory, third-party data and other add-on features in all of its arrangements, and therefore, it reports revenue on a net basis for the platform fees charged to clients. The Company generally bills clients for the gross amount of advertising inventory, third-party data or other add-on features they purchase through its platform, plus platform fees. Some of the Company’s clients have payment relationships directly with advertising inventory suppliers in which case the Company only bills these clients for third-party data, other add-on features and its platform fees. The Company invoices its clients on a monthly basis for the purchases occurring during the month. Invoice payment terms, negotiated on a client-by-client basis, are typically between 30 to 90 days. However, for certain agency clients with sequential liability terms, payments are not due to the Company until such agency client has received payment from its customers who are advertisers. The Company’s accounts receivable are recorded at the amount of gross billings to clients, net of allowances (“Gross Billings”), for the amounts it is responsible to collect, and accounts payable are recorded at the net amount payable to suppliers. Accordingly, both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis. Gross Billings, based on the billing address of the clients or client affiliates, were as follows (in thousands): Three Months Ended March 31, 2018 2017 US $ 339,113 $ 209,908 International 66,868 35,087 Total $ 405,981 $ 244,995 Allowance for Doubtful Accounts The allowance for doubtful accounts was $2.4 million and $2.3 million as of March 31, 2018 and December 31, 2017, respectively. Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 3—Earnings Per Share The Company has two classes of common stock, Class A and Class B. Basic and diluted earnings per share attributable to common stockholders for Class A and Class B common stock were the same because they were entitled to the same liquidation and dividend rights. The computation of basic and diluted earnings per share is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2018 2017 Numerator: Net income $ 9,070 $ 4,909 Denominator: Weighted-average shares outstanding—basic 41,629 39,167 Effect of dilutive securities: Options to purchase common stock 2,524 4,178 Employee stock purchase plan shares 271 170 Restricted stock 119 42 Weighted-average shares outstanding—diluted 44,543 43,557 Basic net income per common share $ 0.22 $ 0.13 Diluted net income per common share $ 0.20 $ 0.11 Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted net income per share 1,487 395 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4—Fair Value Measurements At both March 31, 2018 and December 31, 2017 $5.0 million of cash equivalents, consisting of money market funds, were classified as Level 1 of the fair value hierarchy and valued using quoted market prices in active markets. The Company had no other material financial instruments that were measured at fair value as of March 31, 2018 and December 31, 2017. |
Accounts Payable
Accounts Payable | 3 Months Ended |
Mar. 31, 2018 | |
Payables And Accruals [Abstract] | |
Accounts Payable | Note 5—Accounts Payable Accounts payable included the following (in thousands): As of As of March 31, 2018 December 31, 2017 Accounts payable—media and data $ 426,619 $ 477,716 Accounts payable—other 14,065 12,661 Total $ 440,684 $ 490,377 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 6—Debt Revolving Credit Facility Availability under the Revolving Credit Facility was $194.6 million at March 31, 2018, based on a percentage of eligible accounts receivable and reduced by certain reserves. As of March 31, 2018, the Company was in compliance with all covenants. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note 7—Stock-Based Compensation Stock-Based Compensation Expense Stock-based compensation expense recorded in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended March 31, 2018 2017 Platform operations $ 796 $ 229 Sales and marketing 1,965 539 Technology and development 2,358 665 General and administrative 2,164 889 Total $ 7,283 $ 2,322 Stock Options The following summarizes stock option activity: Shares Under Option (in thousands) Weighted- Average Exercise Price Outstanding as of December 31, 2017 4,745 $ 17.96 Granted 189 50.51 Exercised (415 ) 2.92 Cancelled (8 ) 28.50 Outstanding as of March 31, 2018 4,511 $ 20.68 Exercisable as of March 31, 2018 2,098 $ 6.98 On January 1, 2018, the number of shares authorized for grant under the Company’s 2016 Incentive Award Plan was increased by 1.7 million shares in accordance with plan provisions. Restricted Stock and Restricted Stock Units (“Restricted Stock”) The following summarizes Restricted Stock activity: Shares (in thousands) Weighted- Average Grant Date Fair Value Unvested as of December 31, 2017 418 $ 39.95 Granted 7 49.14 Vested (22 ) 33.25 Forfeited — — Unvested as of March 31, 2018 403 $ 40.50 Employee Stock Purchase Plan Stock-based compensation expense related to ESPP totaled $3.0 million and $1.0 million for the three months ended March 31, 2018 and 2017, respectively, and stock-based compensation related to the first offering period was $2.7 million and $0.9 million for the three months ended March 31, 2018 and 2017, respectively. The first offering period is scheduled to expire immediately following the November 15, 2018 purchase date. On January 1, 2018, the number of shares available for issuance under the Company’s Employee Stock Purchase Plan was increased by 0.4 million shares in accordance with plan provisions. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8—Income Taxes In determining the interim provision for income taxes, the Company uses the annual estimated effective tax rate applied to the actual year-to-date income and adds the tax effects of any discrete items in the reporting period in which they occur. For the three months ended March 31, 2018, the Company’s annual estimated effective tax rate differed from the U.S. federal statutory tax rate of 21% primarily due to state taxes, nondeductible stock-based compensation and the discrete impact of tax benefits associated with stock-based awards. For the three months ended March 31, 2017, the Company’s annual estimated effective tax rate differed from the U.S. federal statutory tax rate of 35% primarily due to state taxes, foreign taxes, nondeductible stock-based compensation and the discrete impact of tax benefits associated with stock-based awards. For the three months ended March 31, 2018 and 2017, the benefit from income taxes included $3.2 million and $5.3 million, respectively, of discrete benefits associated with disqualifying dispositions of stock-based awards. There were no material changes to the Company’s unrecognized tax benefits during the three months ended March 31, 2018, and the Company does not expect to have any significant changes to unrecognized tax benefits through the end of the fiscal year. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9— Commitments and Contingencies As of March 31, 2018, the Company’s non-cancelable minimum lease commitments were as follows (in thousands): Year Amount 2018 (for remaining nine months) $ 6,815 2019 10,365 2020 9,832 2021 8,240 2022 4,430 Thereafter 1,446 $ 41,128 Guarantees and Indemnification In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to clients, vendors, lessors, business partners, and other parties with respect to certain matters, including, but not limited to, losses arising out of breach of such agreements, services to be provided by the Company or from intellectual property infringement claims made by third parties. In addition, the Company has entered into indemnification agreements with directors and certain officers and employees that will require the Company, among other things, to indemnify them against certain liabilities that may arise by reason of their status or service as directors, officers or employees. No demands have been made upon the Company to provide indemnification under such agreements, and thus there are no claims that the Company is aware of that could have a material effect on the Company’s balance sheet, statement of operations or statement of cash flows. Accordingly, no amounts for any obligation have been recorded at March 31, 2018. Litigation From time to time, the Company is subject to various legal proceedings and claims, either asserted or unasserted, that arise in the ordinary course of business. Although the outcome of the various legal proceedings and claims cannot be predicted with certainty, management does not believe that any of these proceedings or other claims will have a material adverse effect on the Company’s business, financial condition, results of operations or cash flows. Employment Contracts The Company has entered into agreements with severance terms with certain employees and officers, all of whom are employed at-will. The Company may be required to accelerate the vesting of certain stock options in the event of changes in control, as defined, and involuntary terminations. |
Basis of Presentation and Sum15
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from these estimates under different assumptions or circumstances. |
Revenue Recognition | Revenue Recognition The Company determines revenue recognition through the following steps: • Identification of a contract with a customer • Identification of the performance obligation(s) in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligation(s) in the contract • Recognition of revenue when or as the performance obligation(s) are satisfied The Company maintains agreements with each client and supplier in the form of master service agreements, which set out the terms of the relationship and access to the Company’s platform. The Company’s performance obligation is to provide the use of its platform to clients to develop ad campaigns and select the advertising inventory, third-party data and other add-on features. The Company charges clients a platform fee, based on a percentage of a client’s purchases through the platform, and the transaction price is determined based on the consideration to which it expects to be entitled in exchange for the completion of a transaction, that is, when a bid is won. The Company reports revenue net of amounts it pays suppliers for the cost of advertising inventory, data and add-on features. The determination of whether the Company is the principal or agent, and hence whether to report revenue on a gross basis for the amount of the advertising inventory, third-party data and other add-on features the clients purchase using the platform plus the Company’s platform fees or on a net basis for the amount of platform fees charged to the client, requires judgment. The Company determined that it is not primarily responsible for the purchase of advertising inventory, third-party data and other add-on features, but rather, it is primarily responsible to provide a platform that enables clients to bid on advertising inventory, and use data and other add-on features in designing and executing their campaigns. The Company does not control the inventory, third party data and other add-on features prior to the purchase by the client, and it does not have pricing latitude with respect to the cost of advertising inventory, third-party data and other add-on features purchased by clients through its platform. The platform fee the Company charges clients is a percentage of their purchases through its platform, similar to a commission, and the platform fee is not contingent on the results of an advertising campaign. Based on these and other factors, the Company determined that it is not the principal in the purchase and sale of advertising inventory, third-party data and other add-on features in all of its arrangements, and therefore, it reports revenue on a net basis for the platform fees charged to clients. The Company generally bills clients for the gross amount of advertising inventory, third-party data or other add-on features they purchase through its platform, plus platform fees. Some of the Company’s clients have payment relationships directly with advertising inventory suppliers in which case the Company only bills these clients for third-party data, other add-on features and its platform fees. The Company invoices its clients on a monthly basis for the purchases occurring during the month. Invoice payment terms, negotiated on a client-by-client basis, are typically between 30 to 90 days. However, for certain agency clients with sequential liability terms, payments are not due to the Company until such agency client has received payment from its customers who are advertisers. The Company’s accounts receivable are recorded at the amount of gross billings to clients, net of allowances (“Gross Billings”), for the amounts it is responsible to collect, and accounts payable are recorded at the net amount payable to suppliers. Accordingly, both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis. Gross Billings, based on the billing address of the clients or client affiliates, were as follows (in thousands): Three Months Ended March 31, 2018 2017 US $ 339,113 $ 209,908 International 66,868 35,087 Total $ 405,981 $ 244,995 |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The allowance for doubtful accounts was $2.4 million and $2.3 million as of March 31, 2018 and December 31, 2017, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Basis of Presentation and Sum16
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Gross Billings Based on Billing of Clients Affiliates | Gross Billings, based on the billing address of the clients or client affiliates, were as follows (in thousands): Three Months Ended March 31, 2018 2017 US $ 339,113 $ 209,908 International 66,868 35,087 Total $ 405,981 $ 244,995 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The computation of basic and diluted earnings per share is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2018 2017 Numerator: Net income $ 9,070 $ 4,909 Denominator: Weighted-average shares outstanding—basic 41,629 39,167 Effect of dilutive securities: Options to purchase common stock 2,524 4,178 Employee stock purchase plan shares 271 170 Restricted stock 119 42 Weighted-average shares outstanding—diluted 44,543 43,557 Basic net income per common share $ 0.22 $ 0.13 Diluted net income per common share $ 0.20 $ 0.11 Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted net income per share 1,487 395 |
Accounts Payable (Tables)
Accounts Payable (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of Accounts Payable | Accounts payable included the following (in thousands): As of As of March 31, 2018 December 31, 2017 Accounts payable—media and data $ 426,619 $ 477,716 Accounts payable—other 14,065 12,661 Total $ 440,684 $ 490,377 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Stock-Based Compensation Expense by Operating Expense Category | Stock-based compensation expense recorded in the condensed consolidated statements of operations was as follows (in thousands): Three Months Ended March 31, 2018 2017 Platform operations $ 796 $ 229 Sales and marketing 1,965 539 Technology and development 2,358 665 General and administrative 2,164 889 Total $ 7,283 $ 2,322 |
Summary of Stock Option Activity | The following summarizes stock option activity: Shares Under Option (in thousands) Weighted- Average Exercise Price Outstanding as of December 31, 2017 4,745 $ 17.96 Granted 189 50.51 Exercised (415 ) 2.92 Cancelled (8 ) 28.50 Outstanding as of March 31, 2018 4,511 $ 20.68 Exercisable as of March 31, 2018 2,098 $ 6.98 |
Summary of Nonvested Restricted Stock Activity | The following summarizes Restricted Stock activity: Shares (in thousands) Weighted- Average Grant Date Fair Value Unvested as of December 31, 2017 418 $ 39.95 Granted 7 49.14 Vested (22 ) 33.25 Forfeited — — Unvested as of March 31, 2018 403 $ 40.50 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Minimum Lease Commitments under Non-Cancelable Operating Leases | As of March 31, 2018, the Company’s non-cancelable minimum lease commitments were as follows (in thousands): Year Amount 2018 (for remaining nine months) $ 6,815 2019 10,365 2020 9,832 2021 8,240 2022 4,430 Thereafter 1,446 $ 41,128 |
Basis of Presentation and Sum21
Basis of Presentation and Summary of Significant Accounting Policies - Revenue Recognition (Detail) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Standards Update 2014-09 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, performance obligation, description of payment terms | The Company invoices its clients on a monthly basis for the purchases occurring during the month. Invoice payment terms, negotiated on a client-by-client basis, are typically between 30 to 90 days. However, for certain agency clients with sequential liability terms, payments are not due to the Company until such agency client has received payment from its customers who are advertisers. |
Basis of Presentation and Sum22
Basis of Presentation and Summary of Significant Accounting Policies - Gross Billings Based on Billing Address of Clients or Client Affiliates (Detail) - Accounting Standards Update 2014-09 - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | ||
Gross Billings | $ 405,981 | $ 244,995 |
US | ||
Disaggregation Of Revenue [Line Items] | ||
Gross Billings | 339,113 | 209,908 |
International | ||
Disaggregation Of Revenue [Line Items] | ||
Gross Billings | $ 66,868 | $ 35,087 |
Basis of Presentation and Sum23
Basis of Presentation and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | ||
Allowance for doubtful accounts | $ 2.4 | $ 2.3 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Class$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | |
Earnings Per Share | ||
Number of classes of common stock | Class | 2 | |
Numerator: | ||
Net income | $ | $ 9,070 | $ 4,909 |
Denominator: | ||
Weighted-average shares outstanding—basic | 41,629 | 39,167 |
Effect of dilutive securities: | ||
Options to purchase common stock | 2,524 | 4,178 |
Employee stock purchase plan shares | 271 | 170 |
Restricted stock | 119 | 42 |
Weighted-average shares outstanding—diluted | 44,543 | 43,557 |
Basic net income per common share | $ / shares | $ 0.22 | $ 0.13 |
Diluted net income per common share | $ / shares | $ 0.20 | $ 0.11 |
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted net income per share | 1,487 | 395 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Money Market Funds | Level 1 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Cash equivalents | $ 5 | $ 5 |
Accounts Payable (Detail)
Accounts Payable (Detail) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accounts Payable | ||
Accounts payable—media and data | $ 426,619 | $ 477,716 |
Accounts payable—other | 14,065 | 12,661 |
Total | $ 440,684 | $ 490,377 |
Debt - Additional Information (
Debt - Additional Information (Detail) $ in Millions | Mar. 31, 2018USD ($) |
Revolving Credit Facility | |
Long-term debt: | |
Credit facility available amount | $ 194.6 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Stock-Based Compensation Expense by Operating Expense Category (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock-based compensation expense, by operating expense category | ||
Stock-based compensation expense | $ 7,283 | $ 2,322 |
Platform operations | ||
Stock-based compensation expense, by operating expense category | ||
Stock-based compensation expense | 796 | 229 |
Sales and marketing | ||
Stock-based compensation expense, by operating expense category | ||
Stock-based compensation expense | 1,965 | 539 |
Technology and development | ||
Stock-based compensation expense, by operating expense category | ||
Stock-based compensation expense | 2,358 | 665 |
General and administrative | ||
Stock-based compensation expense, by operating expense category | ||
Stock-based compensation expense | $ 2,164 | $ 889 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options (Detail) - Stock Options shares in Thousands | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Shares Under Option | |
Outstanding at the beginning of the period (in shares) | shares | 4,745 |
Granted (in shares) | shares | 189 |
Exercised (in shares) | shares | (415) |
Cancelled (in shares) | shares | (8) |
Outstanding at the end of the period (in shares) | shares | 4,511 |
Exercisable as of March 31, 2018 | shares | 2,098 |
Weighted-Average Exercise Price | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 17.96 |
Granted (in dollars per share) | $ / shares | 50.51 |
Exercised (in dollars per share) | $ / shares | 2.92 |
Cancelled (in dollars per share) | $ / shares | 28.50 |
Outstanding at the end of the period (in dollars per share) | $ / shares | 20.68 |
Exercisable as of March 31, 2018 | $ / shares | $ 6.98 |
Stock-Based Compensation - St30
Stock-Based Compensation - Stock Options - Additional Information (Detail) shares in Millions | Jan. 01, 2018shares |
2016 Incentive Award Plan | |
Stock-Based Compensation | |
Number of additional shares authorized for grant | 1.7 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Nonvested Restricted Stock Activity (Detail) shares in Thousands | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Unvested, Shares, beginning balance | shares | 418 |
Granted, Shares | shares | 7 |
Vested, Shares | shares | (22) |
Unvested, Shares, ending balance | shares | 403 |
Unvested, Weighted-Average Grant Date Fair Value Per Share, beginning balance | $ / shares | $ 39.95 |
Granted, Weighted-Average Grant Date Fair Value Per Share | $ / shares | 49.14 |
Vested, Weighted-Average Grant Date Fair Value Per Share | $ / shares | 33.25 |
Unvested, Weighted-Average Grant Date Fair Value Per Share, ending balance | $ / shares | $ / shares | $ 40.50 |
Stock-Based Compensation - ESPP
Stock-Based Compensation - ESPP - Additional Information (Detail) - USD ($) $ in Thousands, shares in Millions | Jan. 01, 2018 | Mar. 31, 2018 | Mar. 31, 2017 |
Stock-Based Compensation | |||
Stock-based compensation expense | $ 7,283 | $ 2,322 | |
ESPP | |||
Stock-Based Compensation | |||
Stock-based compensation expense | 3,000 | 1,000 | |
Number of additional shares authorized for grant | 0.4 | ||
ESPP | First Offering Period | |||
Stock-Based Compensation | |||
Stock-based compensation expense | $ 2,700 | $ 900 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Federal tax at statutory rate (as a percent) | 21.00% | 35.00% |
Discrete benefits associated with disqualifying dispositions of stock-based awards | $ 3.2 | $ 5.3 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Minimum Lease Commitments under Non-Cancelable Operating Leases (Detail) $ in Thousands | Mar. 31, 2018USD ($) |
Non-cancelable minimum lease commitments | |
2018 (for remaining nine months) | $ 6,815 |
2,019 | 10,365 |
2,020 | 9,832 |
2,021 | 8,240 |
2,022 | 4,430 |
Thereafter | 1,446 |
Total | $ 41,128 |
Commitments and Contingencies35
Commitments and Contingencies - Additional Information (Detail) | Mar. 31, 2018USD ($) |
Indemnifications | |
Guarantees and Indemnifications | |
Recorded obligation | $ 0 |