The Trade Desk, Inc. (TTD) 10-Q 10 May 22 2022 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2022	Apr. 30, 2022
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Trading Symbol	TTD
Entity Registrant Name	TRADE DESK, INC.
Entity Central Index Key	0001671933
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity File Number	001-37879
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	27-1887399
Entity Address, Address Line One	42 N. Chestnut Street
Entity Address, City or Town	Ventura
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93001
City Area Code	805
Local Phone Number	585-3434
Title of 12(b) Security	Class A Common Stock, par value $0.000001 per share
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		442,090,841
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		44,234,950

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 844,223	$ 754,154
Short-term investments, net	260,347	204,625
Accounts receivable, net of allowance for credit losses of $8,040 and $7,374 as of March 31, 2022 and December 31, 2021, respectively	1,760,985	2,020,720
Prepaid expenses and other current assets	89,784	112,150
TOTAL CURRENT ASSETS	2,955,339	3,091,649
Property and equipment, net	130,640	135,856
Operating lease assets	228,991	234,091
Deferred income taxes	73,548	68,244
Other assets, non-current	44,203	47,500
TOTAL ASSETS	3,432,721	3,577,340
Current liabilities:
Accounts payable	1,405,673	1,655,684
Accrued expenses and other current liabilities	92,903	101,472
Operating lease liabilities	47,226	46,149
TOTAL CURRENT LIABILITIES	1,545,802	1,803,305
Operating lease liabilities, non-current	229,489	238,449
Other liabilities, non-current	8,327	8,280
TOTAL LIABILITIES	1,783,618	2,050,034
Commitments and contingencies (Note 10)
STOCKHOLDERS’ EQUITY
Preferred stock, par value $0.000001; 100,000 shares authorized, zero shares issued and outstanding as of March 31, 2022 and December 31, 2021
Common stock, par value $0.000001 Class A, 1,000,000 shares authorized; 441,791 and 439,206 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively Class B, 95,000 shares authorized; 44,235 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively	0	0
Additional paid-in capital	1,051,572	915,177
Retained earnings	597,531	612,129
TOTAL STOCKHOLDERS’ EQUITY	1,649,103	1,527,306
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 3,432,721	$ 3,577,340

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts receivable, allowance for credit losses	$ 8,040	$ 7,374
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	441,791,000	439,206,000
Common stock, shares outstanding	441,791,000	439,206,000
Class B common stock
Common stock
Common stock, authorized shares	95,000,000	95,000,000
Common stock, shares issued	44,235,000	44,235,000
Common stock, shares outstanding	44,235,000	44,235,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Statement [Abstract]
Revenue	$ 315,323	$ 219,811
Operating expenses:
Platform operations	63,890	50,500
Sales and marketing	70,688	55,764
Technology and development	71,999	53,918
General and administrative	125,799	51,845
Total operating expenses	332,376	212,027
Income (loss) from operations	(17,053)	7,784
Other expense (income):
Interest expense, net	1,076	45
Foreign currency exchange loss (gain), net	(795)	(353)
Total other expense (income), net	281	(308)
Income (loss) before income taxes	(17,334)	8,092
Benefit from income taxes	(2,736)	(14,550)
Net income (loss)	$ (14,598)	$ 22,642
Earnings (loss) per share:
Basic	$ (0.03)	$ 0.05
Diluted	$ (0.03)	$ 0.05
Weighted-average shares outstanding:
Basic	484,190	472,816
Diluted	484,190	497,916

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Retained Earnings
Balance at beginning of period at Dec. 31, 2020	$ 1,013,145		$ 538,778	$ 474,367
Balance at beginning of period (in shares) at Dec. 31, 2020		473,401
Exercise of common stock options	12,621		12,621
Exercise of common stock options (in shares)		1,794
Issuance of restricted stock, net of forfeitures and shares withheld for taxes	(17,080)		(17,080)
Issuance of restricted stock, net of forfeitures and shares withheld for taxes (in shares)		110
Stock-based compensation	52,985		52,985
Net income	22,642			22,642
Balance at end of period at Mar. 31, 2021	1,084,313		587,304	497,009
Balance at end of period (in shares) at Mar. 31, 2021		475,305
Balance at beginning of period at Dec. 31, 2021	1,527,306		915,177	612,129
Balance at beginning of period (in shares) at Dec. 31, 2021		483,441
Exercise of common stock options	24,408		24,408
Exercise of common stock options (in shares)		2,395
Issuance of restricted stock, net of forfeitures and shares withheld for taxes	(13,428)		(13,428)
Issuance of restricted stock, net of forfeitures and shares withheld for taxes (in shares)		190
Stock-based compensation	125,415		125,415
Net income	(14,598)			(14,598)
Balance at end of period at Mar. 31, 2022	$ 1,649,103		$ 1,051,572	$ 597,531
Balance at end of period (in shares) at Mar. 31, 2022		486,026

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
OPERATING ACTIVITIES:
Net income (loss)	$ (14,598)	$ 22,642
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	12,350	10,011
Stock-based compensation	124,895	52,354
Allowance for credit losses on accounts receivable	725	203
Noncash lease expense	10,515	9,451
Deferred income taxes	(5,304)
Other	998	4,905
Changes in operating assets and liabilities:
Accounts receivable	259,483	208,847
Prepaid expenses and other assets	23,743	(16,180)
Accounts payable	(245,937)	(200,578)
Accrued expenses and other liabilities	(8,688)	(5,691)
Operating lease liabilities	(11,990)	(10,894)
Net cash provided by operating activities	146,192	75,070
INVESTING ACTIVITIES:
Purchases of investments	(121,221)	(89,354)
Sales of investments		4,539
Maturities of investments	64,133	62,670
Purchases of property and equipment	(8,401)	(13,120)
Capitalized software development costs	(1,614)	(1,062)
Net cash used in investing activities	(67,103)	(36,327)
FINANCING ACTIVITIES:
Proceeds from exercise of stock options	24,408	12,621
Taxes paid related to net settlement of restricted stock awards	(13,428)	(17,080)
Net cash provided by (used in) financing activities	10,980	(4,459)
Increase in cash and cash equivalents	90,069	34,284
Cash and cash equivalents—Beginning of period	754,154	437,353
Cash and cash equivalents—End of period	844,223	471,637
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for operating lease liabilities	14,030	15,107
Asset retirement obligation		625
Operating lease assets obtained in exchange for operating lease liabilities	4,732	(937)
Capitalized assets financed by accounts payable	1,837	2,421
Stock-based compensation included in capitalized software development costs	$ 520	$ 631

Nature of Operations

Nature of Operations	3 Months Ended
	Mar. 31, 2022
Accounting Policies [Abstract]
Nature of Operations	Note 1—Nature of Operations The Trade Desk, Inc. (the “Company”) is a global technology company that empowers buyers of advertising. Through the Company’s self-service, cloud-based platform, ad buyers can create, manage and optimize more expressive data-driven digital advertising campaigns across ad formats and channels, including display, video, audio, native and social, on a multitude of devices, such as computers, mobile devices and connected TV (“CTV”). The Company’s platform integrations with major inventory, publisher and data partners provides ad buyers reach and decisioning capabilities, and the Company’s enterprise application programming interfaces (“APIs”) enable its clients to develop on top of the platform. The Company is a Delaware corporation formed in November 2009 and headquartered in Ventura, California with offices in various cities in North America, Europe, Asia and Australia.

Basis of Presentation and Summa

Basis of Presentation and Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2022
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, 2021 was derived from audited financial statements but does not include all disclosures required by GAAP. There have been no material changes to the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2021, 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, 2021, 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 results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results expected for the full year ending December 31, 2022. On June 16, 2021, the Company effected a ten-for-one 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. Management regularly evaluates its estimates, primarily those related to: (1) revenue recognition criteria, including the determination of revenue reporting as net versus gross in the Company’s revenue arrangements, (2) allowances for credit losses accounts, (3) operating lease assets and liabilities, including our incremental borrowing rate and terms and provisions of each lease (4) the useful lives of property and equipment and capitalized software development costs, (5) income taxes, (6) assumptions used in the option pricing models to determine the fair value of stock-based compensation and (7) the recognition and disclosure of contingent liabilities. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances; the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. As of March 31, 2022, the impact of the Coronavirus (“COVID-19”) pandemic on the Company’s business continues to evolve. As a result, many of the Company’s estimates and assumptions, including the allowance for credit losses, consider macro-economic factors in the market, which require increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, the Company’s estimates may change materially in future periods.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2022
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 (loss) 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 (loss) per share is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2022 2021 Numerator: Net income (loss) $ (14,598 ) $ 22,642 Denominator: Weighted-average shares outstanding—basic 484,190 472,816 Effect of dilutive securities — 25,100 Weighted-average shares outstanding—diluted 484,190 497,916 Basic earnings (loss) per share $ (0.03 ) $ 0.05 Diluted earnings (loss) per share $ (0.03 ) $ 0.05 Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted earnings (loss) per share 25,609 263

Cash, Cash Equivalents and Shor

Cash, Cash Equivalents and Short-Term Investments, Net	3 Months Ended
	Mar. 31, 2022
Cash Cash Equivalents And Short Term Investments [Abstract]
Cash, Cash Equivalents and Short-Term Investments, Net	Note 4—Cash, Cash Equivalents and Short-Term Investments, Net Cash, cash equivalents and short-term investments in marketable securities were as follows (in thousands): As of March 31, 2022 Cash and Cash Short-Term Equivalents Investments Total Cash $ 268,511 $ — $ 268,511 Level 1: Money market funds 539,351 — 539,351 Level 2: Commercial paper 36,361 103,176 139,537 Corporate debt securities — 86,455 86,455 U.S. government and agency securities — 70,716 70,716 Total $ 844,223 $ 260,347 $ 1,104,570 As of December 31, 2021 Cash and Cash Short-Term Equivalents Investments Total Cash $ 272,058 $ — $ 272,058 Level 1: Money market funds 431,299 — 431,299 Level 2: Commercial paper 47,544 70,804 118,348 Corporate debt securities 3,253 85,425 88,678 U.S. government and agency securities — 48,396 48,396 Total $ 754,154 $ 204,625 $ 958,779 The Company’s gross unrealized gains or losses from its short-term investments, recorded at fair value, for the three months ended March 31, 2022 and 2021, were immaterial. The contractual maturities of the Company’s short-term investments are as follows (in thousands): March 31, 2022 Due in one year $ 227,934 Due in one to two years 32,413 Total $ 260,347

Leases

Leases	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Leases	Note 5—Leases The components of lease expense recorded in the condensed consolidated statements of operations were as follows (in thousands): Three Months Ended March 31, 2022 2021 Operating lease cost $ 12,484 $ 13,095 Short-term lease cost 472 171 Variable lease cost 1,943 1,923 Sublease income (626 ) (650 ) Total lease cost $ 14,273 $ 14,539

Debt

Debt	3 Months Ended
	Mar. 31, 2022
Debt Disclosure [Abstract]
Debt	Note 6—Debt Credit Facility On June 15, 2021, the Company and a syndicate of banks, led by JPMorgan Chase Bank, N.A., as agent, entered into a Loan and Security Agreement Loans under the Credit Facility bear interest through maturity at a variable rate based upon, at the Company’s option, an annual rate of either a Base Rate or an adjusted LIBOR rate, plus an applicable margin (“Base Rate Borrowings” and “LIBOR Rate Borrowings”). The Base Rate is defined as a rate per annum for any day equal to the greatest of (1) the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the United States, (2) the NYFRB Rate in effect on such day plus half of 1%, and (3) the adjusted LIBOR rate for a one-month interest period on such day plus 1%. The applicable margin is between 0.25% to 1.25% for Base Rate Borrowings and between 1.25% and 2.25% for LIBOR Rate Borrowings based on the Company maintaining certain leverage ratios. The fee for undrawn amounts under the Credit Facility ranges, based on the applicable leverage, from 0.200% to 0.350%. The Company is also required to pay customary letter of credit fees, as necessary. On December 17, 2021, the Company amended the Credit Facility to expand the process for issuing letters of credit and the related invoicing, particularly with respect to letters of credit not denominated in U.S. Dollars. As of March 31, 2022, the Company did not have an outstanding debt balance under the Credit Facility. Availability under the Credit Facility was $444 million as of March 31, 2022, which is net of outstanding letters of credit of $6 million. The Credit Facility matures, and all outstanding amounts become due and payable, on June 15, 2026. The Credit Facility contains customary conditions to borrowings, events of default and covenants, including covenants that restrict the Company’s ability to sell assets, make changes to the nature of the Company’s business, engage in mergers or acquisitions, incur, assume or permit to exist additional indebtedness and guarantees, create or permit to exist liens, pay dividends, issue equity instruments, make distributions or redeem or repurchase capital stock or make other investments, engage in transactions with affiliates and make payments in respect of subordinated debt. The Credit Facility also requires the Company to maintain compliance with a maximum ratio of consolidated funded debt to consolidated EBITDA of 3.50 to 1.00. As of March 31, 2022, the Company was in compliance with all covenants.

Stock-Based Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2022
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, 2022 2021 Platform operations $ 5,950 $ 5,015 Sales and marketing 16,525 13,684 Technology and development 22,393 16,094 General and administrative 80,027 17,561 Total $ 124,895 $ 52,354 Stock Options The following summarizes stock option activity: Shares Under Option (in thousands) Weighted- Average Exercise Price Outstanding as of December 31, 2021 18,984 $ 15.14 Granted 122 81.37 Exercised (2,395 ) 10.19 Expired/forfeited (247 ) 39.93 Outstanding as of March 31, 2022 16,464 $ 15.98 Exercisable as of March 31, 2022 11,803 $ 9.29 At March 31, 2022, the Company had unrecognized stock-based compensation relating to stock options of approximately $83 million, which is expected to be recognized over a weighted-average period of 1.7 years. CEO Performance Option In October 2021, the Company granted a market-based performance award to the Company’s Chief Executive Officer (the “CEO Performance Option”) under the Company’s 2016 Incentive Award Plan. The CEO Performance Option has an exercise price of $68.29 per share. At March 31, 2022, the CEO Performance Option had 2.4 million exercisable options and 19.2 million options outstanding. No options were granted, exercised, forfeited or expired during the three months ended March 31, 2022. No Restricted Stock The following summarizes restricted stock activity: RSU (in thousands) Weighted- Average Grant Date Fair Value Unvested as of December 31, 2021 5,597 $ 51.54 Granted 884 77.10 Vested (518 ) 40.20 Forfeited (266 ) 57.35 Unvested as of March 31, 2022 5,697 $ 56.27 At March 31, 2022, the Company had unrecognized stock-based compensation relating to restricted stock of approximately $296 million, which is expected to be recognized over a weighted-average period of 2.8 years. Employee Stock Purchase Plan (“ESPP”) Stock-based compensation expense related to the ESPP totaled $26 million for the three months ended March 31, 2022 and 2021. At March 31, 2022, the Company had unrecognized stock-based compensation relating to ESPP awards of approximately $17 million, which is expected to be recognized over a weighted-average period of 0.3 years.

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Note 8—Income Taxes In determining the interim provision for income taxes, the Company utilized the discrete effective tax rate method, as allowed by Accounting Standards Codification (“ASC”) 740-270-30-18, “Income Taxes – Interim Reporting.” For the three months ended March 31, 2022 and 2021, the income tax benefit included benefits associated with stock-based awards of $26 million. For the three months ended March 31, 2022 and 2021, the Company’s effective tax rate differed from the United States federal statutory tax rate of 21% primarily due to the impact of tax benefits associated with stock-based awards, nondeductible stock-based compensation, state and foreign taxes and research and development tax credits. There were no material changes to the Company’s unrecognized tax benefits during the three months ended March 31, 2022, and the Company does not expect to have any significant changes to unrecognized tax benefits through the end of the fiscal year.

Segment and Geographic Informat

Segment and Geographic Information	3 Months Ended
	Mar. 31, 2022
Segments Geographical Areas [Abstract]
Segment and Geographic Information	Note 9— Segment and Geographic Information The Company has one primary business activity and operates in one reportable and operating segment. The Company reports revenue net of amounts it pays suppliers for the cost of advertising inventory, third-party data and other add-on features (collectively, “Supplier Features”). The Company generally bills clients based on Gross Billings, which is the gross amount of Supplier Features they purchase through its platform and the platform fees, net of allowances. The Company’s accounts receivable are recorded at the amount of 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, set forth as a percentage of total Gross Billings, were as follows: Three Months Ended March 31, 2022 2021 U.S. 88 % 86 % International 12 % 14 % Total 100 % 100 %

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2022
Commitments And Contingencies Disclosure [Abstract]
Commitments and Contingencies	Note 10— Commitments and Contingencies 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, 2022. 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. On June 28, 2021, a class action lawsuit was filed against the Company, the members of the Company’s board of directors, and one of the Company’s executive officers (collectively, the “Defendants”) in the Court of Chancery of the State of Delaware. The complaint alleges generally that the Defendants breached their fiduciary duties to the Company’s stockholders in connection with the negotiation and approval of the amendments to the Company’s certificate of incorporation and related matters voted on at the Special Meeting of Stockholders held on December 22, 2020 (the “Amendments”). The plaintiff is seeking a court order rescinding the Amendments, as well as monetary damages. On November 29, 2021, the plaintiff filed a supplement to the complaint, adding factual allegations related to the CEO Performance Option. On February 1, 2022, the Defendants moved to dismiss the complaint. A hearing on Defendants’ motions was held on April 11, 2022. The Company believes that all of the claims asserted in the complaint are without merit and intends to defend against them vigorously. However, litigation is inherently uncertain and there can be no assurance regarding the likelihood that the Defendants’ defense of the action will be successful. Employment Contracts The Company has entered into agreements with severance terms with certain employees and officers, all of whom are employed on an at-will basis, subject to certain severance obligations in the event of certain involuntary terminations. 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 Sum_2

Basis of Presentation and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2022
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. Management regularly evaluates its estimates, primarily those related to: (1) revenue recognition criteria, including the determination of revenue reporting as net versus gross in the Company’s revenue arrangements, (2) allowances for credit losses accounts, (3) operating lease assets and liabilities, including our incremental borrowing rate and terms and provisions of each lease (4) the useful lives of property and equipment and capitalized software development costs, (5) income taxes, (6) assumptions used in the option pricing models to determine the fair value of stock-based compensation and (7) the recognition and disclosure of contingent liabilities. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances; the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. As of March 31, 2022, the impact of the Coronavirus (“COVID-19”) pandemic on the Company’s business continues to evolve. As a result, many of the Company’s estimates and assumptions, including the allowance for credit losses, consider macro-economic factors in the market, which require increased judgment and carry a higher degree of variability and volatility. As events continue to evolve and additional information becomes available, the Company’s estimates may change materially in future periods.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2022
Earnings Per Share [Abstract]
Computation of Basic and Diluted EPS	The computation of basic and diluted earnings (loss) per share is as follows (in thousands, except per share amounts): Three Months Ended March 31, 2022 2021 Numerator: Net income (loss) $ (14,598 ) $ 22,642 Denominator: Weighted-average shares outstanding—basic 484,190 472,816 Effect of dilutive securities — 25,100 Weighted-average shares outstanding—diluted 484,190 497,916 Basic earnings (loss) per share $ (0.03 ) $ 0.05 Diluted earnings (loss) per share $ (0.03 ) $ 0.05 Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted earnings (loss) per share 25,609 263

Cash, Cash Equivalents and Sh_2

Cash, Cash Equivalents and Short-Term Investments, Net (Tables)	3 Months Ended
	Mar. 31, 2022
Cash Cash Equivalents And Short Term Investments [Abstract]
Schedule of Cash, Cash Equivalents and Short-term Investments in Marketable Securities	Cash, cash equivalents and short-term investments in marketable securities were as follows (in thousands): As of March 31, 2022 Cash and Cash Short-Term Equivalents Investments Total Cash $ 268,511 $ — $ 268,511 Level 1: Money market funds 539,351 — 539,351 Level 2: Commercial paper 36,361 103,176 139,537 Corporate debt securities — 86,455 86,455 U.S. government and agency securities — 70,716 70,716 Total $ 844,223 $ 260,347 $ 1,104,570 As of December 31, 2021 Cash and Cash Short-Term Equivalents Investments Total Cash $ 272,058 $ — $ 272,058 Level 1: Money market funds 431,299 — 431,299 Level 2: Commercial paper 47,544 70,804 118,348 Corporate debt securities 3,253 85,425 88,678 U.S. government and agency securities — 48,396 48,396 Total $ 754,154 $ 204,625 $ 958,779
Schedule of Contractual Maturities of Short-Term Investments	The contractual maturities of the Company’s short-term investments are as follows (in thousands): March 31, 2022 Due in one year $ 227,934 Due in one to two years 32,413 Total $ 260,347

Leases (Tables)

Leases (Tables)	3 Months Ended
	Mar. 31, 2022
Leases [Abstract]
Summary of Components of Lease Expense	The components of lease expense recorded in the condensed consolidated statements of operations were as follows (in thousands): Three Months Ended March 31, 2022 2021 Operating lease cost $ 12,484 $ 13,095 Short-term lease cost 472 171 Variable lease cost 1,943 1,923 Sublease income (626 ) (650 ) Total lease cost $ 14,273 $ 14,539

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2022
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Schedule of 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, 2022 2021 Platform operations $ 5,950 $ 5,015 Sales and marketing 16,525 13,684 Technology and development 22,393 16,094 General and administrative 80,027 17,561 Total $ 124,895 $ 52,354
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, 2021 18,984 $ 15.14 Granted 122 81.37 Exercised (2,395 ) 10.19 Expired/forfeited (247 ) 39.93 Outstanding as of March 31, 2022 16,464 $ 15.98 Exercisable as of March 31, 2022 11,803 $ 9.29
Summary of Restricted Stock Activity	The following summarizes restricted stock activity: RSU (in thousands) Weighted- Average Grant Date Fair Value Unvested as of December 31, 2021 5,597 $ 51.54 Granted 884 77.10 Vested (518 ) 40.20 Forfeited (266 ) 57.35 Unvested as of March 31, 2022 5,697 $ 56.27

Segment and Geographic Inform_2

Segment and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2022
Segments Geographical Areas [Abstract]
Gross Billings Percentage, Based on Billing Address of Clients or Client Affiliates	Gross Billings, based on the billing address of the clients or client affiliates, set forth as a percentage of total Gross Billings, were as follows: Three Months Ended March 31, 2022 2021 U.S. 88 % 86 % International 12 % 14 % Total 100 % 100 %

Basis of Presentation and Sum_3

Basis of Presentation and Summary of Significant Accounting Policies - Additional Information (Details)	Jun. 16, 2021
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Stock split ratio	0.1

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail)	Mar. 31, 2022Class
Earnings Per Share [Abstract]
Number of classes of common stock	2

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic and Diluted EPS (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Numerator:
Net income (loss)	$ (14,598)	$ 22,642
Denominator:
Weighted-average shares outstanding—basic	484,190	472,816
Effect of dilutive securities		25,100
Weighted-average shares outstanding—diluted	484,190	497,916
Basic earnings (loss) per share	$ (0.03)	$ 0.05
Diluted earnings (loss) per share	$ (0.03)	$ 0.05
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted earnings (loss) per share	25,609	263

Cash, Cash Equivalents and Sh_3

Cash, Cash Equivalents and Short -Term Investments, Net - Schedule of Cash, Cash Equivalents and Short-term Investments in Marketable Securities (Detail) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents	$ 844,223	$ 754,154
Short-Term Investments, Net	260,347	204,625
Available For Sale
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents	844,223	754,154
Short-Term Investments, Net	260,347	204,625
Total	1,104,570	958,779
Available For Sale | Cash
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents	268,511	272,058
Total	268,511	272,058
Available For Sale | Level 1 | Money Market Funds
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents	539,351	431,299
Total	539,351	431,299
Available For Sale | Level 2 | Commercial Paper
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents	36,361	47,544
Short-Term Investments, Net	103,176	70,804
Total	139,537	118,348
Available For Sale | Level 2 | Corporate Debt Securities
Schedule Of Available For Sale Securities [Line Items]
Cash and cash equivalents		3,253
Short-Term Investments, Net	86,455	85,425
Total	86,455	88,678
Available For Sale | Level 2 | U.S. Government and Agency Securities
Schedule Of Available For Sale Securities [Line Items]
Short-Term Investments, Net	70,716	48,396
Total	$ 70,716	$ 48,396

Cash, Cash Equivalents and Sh_4

Cash, Cash Equivalents and Short -Term Investments, Net - Schedule of Contractual Maturities of Short-Term Investments (Detail) $ in Thousands	Mar. 31, 2022USD ($)
Available For Sale Securities Debt Maturities Fair Value [Abstract]
Due in one year	$ 227,934
Due in one to two years	32,413
Total	$ 260,347

Leases - Summary of Components

Leases - Summary of Components of Lease Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Lease Cost [Abstract]
Operating lease cost	$ 12,484	$ 13,095
Short-term lease cost	472	171
Variable lease cost	1,943	1,923
Sublease income	(626)	(650)
Total lease cost	$ 14,273	$ 14,539

Debt - Additional Information (

Debt - Additional Information (Detail) - USD ($)	Jun. 15, 2021	Mar. 31, 2022
Loan and Security Agreement
Long-term debt:
Line of credit maximum amount right to increase	$ 300,000,000
Interest rate description		The Base Rate is defined as a rate per annum for any day equal to the greatest of (1) the rate of interest last quoted by The Wall Street Journal as the “Prime Rate” in the United States, (2) the NYFRB Rate in effect on such day plus half of 1%, and (3) the adjusted LIBOR rate for a one-month interest period on such day plus 1%. The applicable margin is between 0.25% to 1.25% for Base Rate Borrowings and between 1.25% and 2.25% for LIBOR Rate Borrowings based on the Company maintaining certain leverage ratios.
Outstanding debt balance		$ 0
Availability under the credit facility		$ 444,000,000
Credit facility, maturity		Jun. 15, 2026
Maximum ratio of consolidated funded debt to consolidated EBITDA		350.00%
Loan and Security Agreement | Minimum
Long-term debt:
Fee percentage for undrawn amounts		0.20%
Loan and Security Agreement | Maximum
Long-term debt:
Fee percentage for undrawn amounts		0.35%
Loan and Security Agreement | LIBOR Rate
Long-term debt:
Description of variable rate basis		one-month interest period on such day plus 1%
Basis spread on variable rate		1.00%
Loan and Security Agreement | LIBOR Rate | Minimum
Long-term debt:
Basis spread on variable rate		1.25%
Loan and Security Agreement | LIBOR Rate | Maximum
Long-term debt:
Basis spread on variable rate		2.25%
Loan and Security Agreement | NYFRB Rate
Long-term debt:
Description of variable rate basis		day plus half of 1%
Basis spread on variable rate		1.00%
Loan and Security Agreement | Base Rate | Minimum
Long-term debt:
Basis spread on variable rate		0.25%
Loan and Security Agreement | Base Rate | Maximum
Long-term debt:
Basis spread on variable rate		1.25%
Loan and Security Agreement Revolving Loan Facility
Long-term debt:
Line of credit facility	450,000,000
Loan and Security Agreement Revolving Loan Facility Swingline Borrowings
Long-term debt:
Line of credit facility	20,000,000
Loan and Security Agreement Revolving Loan Facility Letter of Credit
Long-term debt:
Line of credit facility	$ 15,000,000
Outstanding letters of credit		$ 6,000,000

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stock-based compensation expense, by operating expense category
Stock-based compensation expense	$ 124,895	$ 52,354
Platform operations
Stock-based compensation expense, by operating expense category
Stock-based compensation expense	5,950	5,015
Sales and marketing
Stock-based compensation expense, by operating expense category
Stock-based compensation expense	16,525	13,684
Technology and development
Stock-based compensation expense, by operating expense category
Stock-based compensation expense	22,393	16,094
General and administrative
Stock-based compensation expense, by operating expense category
Stock-based compensation expense	$ 80,027	$ 17,561

Stock-Based Compensation - Summ

Stock-Based Compensation - Summary of Stock Option Activity (Detail) - Share-based Payment Arrangement, Option shares in Thousands	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Shares Under Option
Outstanding at the beginning of the period (in shares) | shares	18,984
Granted (in shares) | shares	122
Exercised (in shares) | shares	(2,395)
Expired/forfeited (in shares) | shares	(247)
Outstanding at the end of the period (in shares) | shares	16,464
Exercisable as of March 31, 2022 | shares	11,803
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) | $ / shares	$ 15.14
Granted (in dollars per share) | $ / shares	81.37
Exercised (in dollars per share) | $ / shares	10.19
Expired/forfeited (in dollars per share) | $ / shares	39.93
Outstanding at the end of the period (in dollars per share) | $ / shares	15.98
Exercisable as of March 31, 2022 | $ / shares	$ 9.29

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Options - Additional Information (Detail) - Share-based Payment Arrangement, Option $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)
Stock Options, additional disclosures
Unrecognized stock-based compensation	$ 83
Unrecognized stock-based compensation, recognition period	1 year 8 months 12 days

Stock-Based Compensation - CEO

Stock-Based Compensation - CEO Performance Option - Additional Information (Detail) - Performance Option - 2016 Incentive Award Plan - Chief Executive Officer $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)Trancheshares	Oct. 31, 2021$ / shares
Stock-Based Compensation
Exercise price | $ / shares		$ 68.29
Share-based compensation, exercisable options	2,400,000
Share-based compensation, options outstanding	19,200,000
Share-based compensation, options granted	0
Exercise of common stock options (in shares)	0
Share-based compensation, options forfeited or expired	0
Stock-based compensation expense | $	$ 66
Unrecognized stock-based compensation | $	$ 596
Unrecognized stock-based compensation, recognition period	2 years 9 months 18 days
Share-based compensation, acceleration of unachieved award tranches occurred | Tranche	0

Stock-Based Compensation - Su_2

Stock-Based Compensation - Summary of Restricted Stock Activity (Detail) shares in Thousands	3 Months Ended
	Mar. 31, 2022$ / sharesshares
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Unvested, RSU, beginning balance | shares	5,597
Granted, RSU | shares	884
Vested, RSU | shares	(518)
Forfeited, RSU | shares	(266)
Unvested, RSU, ending balance | shares	5,697
Unvested, Weighted-Average Grant Date Fair Value Per Share, beginning balance | $ / shares	$ 51.54
Granted, Weighted-Average Grant Date Fair Value Per Share | $ / shares	77.10
Vested, Weighted-Average Grant Date Fair Value Per Share | $ / shares	40.20
Forfeited, Weighted-Average Grant Date Fair Value Per Share | $ / shares	57.35
Unvested, Weighted-Average Grant Date Fair Value Per Share, ending balance | $ / shares	$ 56.27

Stock-Based Compensation - Rest

Stock-Based Compensation - Restricted Stock - Additional Information (Detail) - Restricted Stock $ in Millions	3 Months Ended
	Mar. 31, 2022USD ($)
Stock-Based Compensation
Unrecognized employee stock-based compensation	$ 296
Weighted-average recognition period employee stock based compensation	2 years 9 months 18 days

Stock-Based Compensation - ESPP

Stock-Based Compensation - ESPP - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Stock-Based Compensation
Stock-based compensation expense	$ 124,895	$ 52,354
ESPP
Stock-Based Compensation
Stock-based compensation expense	26,000	$ 26,000
Unrecognized employee stock-based compensation	$ 17,000
Unrecognized stock-based compensation, recognition period	3 months 18 days

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Income Tax Disclosure [Abstract]
Provision for (benefit from) income taxes, benefits associated with stock-based awards	$ 26	$ 26
Federal tax at statutory rate (as a percent)	21.00%	21.00%

Segment and Geographical Inform

Segment and Geographical Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2022BusinessSegment
Segments Geographical Areas [Abstract]
Number of business activity | Business	1
Number of operating segments	1
Number of reportable segments	1

Segment and Geographical Info_2

Segment and Geographical Information - Gross Billings, Based on Billing Address of Clients or Client Affiliates (Detail)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Revenues From External Customers And Long Lived Assets [Line Items]
Gross Billings	100.00%	100.00%
U.S.
Revenues From External Customers And Long Lived Assets [Line Items]
Gross Billings	88.00%	86.00%
International
Revenues From External Customers And Long Lived Assets [Line Items]
Gross Billings	12.00%	14.00%

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Mar. 31, 2022USD ($)
Indemnifications
Commitments and Contingencies
Recorded obligation	$ 0