Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Trade Desk Inc., consolidated cash flow statement

US$ in thousands

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	393,076)	178,940)	53,385)	137,762)	242,317)
Depreciation and amortization	87,490)	80,418)	54,425)	42,219)	28,632)
Stock-based compensation	494,699)	491,621)	498,642)	337,413)	111,775)
Deferred income taxes	(76,903)	(61,597)	(11,507)	(16,777)	(31,218)
Noncash lease expense	57,403)	48,955)	44,115)	40,315)	33,269)
Provision for expected credit losses on accounts receivable	853)	2,960)	3,203)	1,456)	3,149)
Other	(7,881)	(20,379)	622)	5,803)	2,190)
Accounts receivable	(474,227)	(554,012)	(291,747)	(444,342)	(418,054)
Prepaid expenses and other current and non-current assets	(38,783)	(26,815)	50,655)	1,648)	(66,655)
Accounts payable	298,919)	475,463)	187,119)	309,410)	481,313)
Accrued expenses and other current and non-current liabilities	46,564)	35,681)	8,168)	7,596)	35,446)
Operating lease liabilities	(41,754)	(52,913)	(48,346)	(43,990)	(17,095)
Changes in operating assets and liabilities	(209,281)	(122,596)	(94,151)	(169,678)	14,955)
Adjustments to reconcile net income to net cash provided by operating activities	346,380)	419,382)	495,349)	240,751)	162,752)
Net cash provided by operating activities	739,456)	598,322)	548,734)	378,513)	405,069)
Purchases of investments	(679,539)	(608,379)	(553,295)	(278,387)	(230,759)
Sales of investments	—)	—)	1,977)	4,539)	—)
Maturities of investments	629,088)	555,806)	338,829)	253,444)	167,602)
Purchases of property and equipment	(98,238)	(46,790)	(84,160)	(54,804)	(74,061)
Capitalized software development costs	(8,824)	(8,230)	(7,725)	(5,169)	(6,053)
Business acquisition	—)	—)	—)	(13,261)	—)
Net cash used in investing activities	(157,513)	(107,593)	(304,374)	(93,638)	(143,271)
Repurchases of Class A common stock	(234,784)	(646,597)	—)	—)	—)
Proceeds from line of credit	—)	—)	—)	—)	143,000)
Repayment on line of credit	—)	—)	—)	—)	(143,000)
Payment of debt financing costs	—)	—)	—)	(1,924)	—)
Proceeds from exercise of stock options	216,281)	60,525)	47,525)	61,476)	76,146)
Proceeds from employee stock purchase plan	49,989)	38,482)	33,062)	29,229)	21,671)
Taxes paid related to net settlement of restricted stock awards	(139,095)	(78,516)	(48,595)	(56,855)	(53,138)
Net cash provided by (used in) financing activities	(107,609)	(626,106)	31,992)	31,926)	44,679)
Increase (decrease) in cash and cash equivalents	474,334)	(135,377)	276,352)	316,801)	306,477)
Cash and cash equivalents, beginning of year	895,129)	1,030,506)	754,154)	437,353)	130,876)
Cash and cash equivalents, end of year	1,369,463)	895,129)	1,030,506)	754,154)	437,353)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

The financial data reflects various notable trends and changes over the five-year period ending in 2024.

Profitability and Income: Net income exhibits a fluctuating pattern, initially declining sharply from 242,317 thousand USD in 2020 to 53,385 thousand USD in 2022, followed by a recovery to 393,076 thousand USD by 2024. This resurgence suggests significant improvement in operating performance or other income sources in the latter years.
Non-Cash Expenses: Depreciation and amortization steadily increased from 28,632 thousand USD in 2020 to 87,490 thousand USD in 2024, reflecting ongoing capital investment or intangible asset amortization. Stock-based compensation showed substantial growth, peaking at nearly 495,000 thousand USD in 2024, which indicates increased compensation expense largely through equity, potentially impacting earnings quality. Deferred income taxes moved from negative values, widening to -76,903 thousand USD by 2024, indicating increasing deferred tax liabilities or adjustments.
Working Capital and Operating Assets/Liabilities: Accounts receivable fluctuated with notable negative values, indicating reductions or write-offs, and a sizable decrease in 2023. Accounts payable also varied considerably, with a peak of 481,313 thousand USD in 2020 and decreases thereafter. Changes in operating assets and liabilities were negative in most years after 2020, reaching a substantial outflow of -209,281 thousand USD in 2024, suggesting increased cash being tied up in working capital.
Cash Flows from Operating Activities: Operating cash flow remained strong throughout the period, increasing from 405,069 thousand USD in 2020 to 739,456 thousand USD in 2024. This consistent positive cash generation signals robust operational efficiency despite fluctuations in net income.
Investing Activities: Purchases of investments steadily increased, reaching nearly 680,000 thousand USD in 2024, indicating aggressive investment or asset acquisition strategies. Concurrently, maturities of investments rose significantly to 629,088 thousand USD in 2024, showing a high turnover or redemption of investment holdings. Capital expenditures (property and equipment) were variable but remained a significant cash outflow. Overall, net cash used in investing activities was positive only in 2021, with substantial negative outflows in other years, particularly 2022.
Financing Activities: Financing cash flows evolved from positive to strongly negative over the period, with major outflows in 2023 due to large repurchases of Class A common stock (646,597 thousand USD) and further share repurchases in 2024 (234,784 thousand USD). Proceeds from exercise of stock options and employee stock purchase plans grew, reflecting ongoing equity financing engagement. Taxes paid on net settlement of restricted stock awards increased dramatically, reaching -139,095 thousand USD in 2024. The company executed line of credit borrowings and repayments in 2020 but not in later years.
Liquidity and Cash Position: Cash and cash equivalents exhibited significant growth from 130,876 thousand USD at the start of 2020 to 1,369,463 thousand USD by the end of 2024, despite a dip in 2023. The increase in cash reserves reflects strong operating cash flows and careful cash management even amid large investing and financing outflows.

Overall, the data indicates a dynamic financial profile characterized by fluctuating profitability but strong operational cash flow generation, heavy investment activities, substantial equity compensation expenses, and aggressive share repurchases beginning in 2023. The company has maintained robust liquidity through the period, supporting its strategic financial management decisions.

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Trade Desk Inc. (NASDAQ:TTD)

Cash Flow Statement