The Trade Desk, Inc. · NASDAQ:TTD

The Trade Desk — Q1 2023 Earnings Presentation

52 slides from The Trade Desk's earnings presentation, May 10, 2023

  1. Slide 1: Investor Presentation First Quarter 2023

    INVESTOR PRESENTATION FIRST QUARTER 2023

  2. Slide 2: Statement of caution under the Private Securities Litigation Reform Act of 1995

    Statement of caution under the Private Securities Litigation Reform Act of 1995 This document contains “forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to expectations concerning matters that (a) are not historical facts

  3. Slide 3: Most buyers are ad agencies, brands, or other technology companies

    <= HAT EF DO MOST BUYERS ARE AD AGENCIES, BRANDS, OR OTHER TECHNOLOGY COMPANIES. © theTradeDesk

  4. Slide 4: We've been profitable since 2013

    WE'VE BEEN PROFITABLE SINCE 2013 MAY 2011 $0.08 day 2015 First $2M and $3M day $114M in revenue, $16M in adj. net income, and $39M in adj. EBITDA 2012 First $1M month 2014 First $1M day Numbers represent total spend on platform, unless otherwise stated, Adjusted net income and EBITDA typically exclu

  5. Slide 5: The Trade Desk by the numbers

    The Trade Desk by the numbers GROSS SPEND? REVENUE? ern 9, ($ in millions) ($ in millions) sre $6,172 $1,196 Eg Eg = $3,130 ala 52% $061 $836 Py = 1,556 308 sioo7 $ $203 $552 $4 mm a O — = FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 $1,578 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021

  6. Slide 6: Advertising is...

    MOs! CIV ERIISING IS © theTradeDesk

  7. Slide 7: And it's bigger than just a move to digital

    ANDIT'S BIGGER THAN JUST A MOVE TO DIGITAL

  8. Slide 8: The Market

    THE MARKET

  9. Slide 9: Price discovery enables healthy markets

    PRICE DISCOVERY ENABLES HEALTHY MARKETS

  10. Slide 10: We are targeting a massive TAM

    We are targeting a massive TAM We believe advertising will be transacted digitally. The $830B future of all media is digital on and programmatic... ~~. Eventually all media will be digital, and it will be ~$165B transacted by machines. LINEAR TELEVISION ~$135B - CEO OF A GLOBAL MEDIA DIGITAL MEDIA I

  11. Slide 11: Publishers/Sellers/Content Owners

    Publishers/ Sellers/ Content Owners

  12. Slide 12: What we do

    WHAT WE DO Provide a self-servi to agencies and b deliberately picks 500 billion digital a opportunities a day. > comes 4+ MASTER SERVICE MENTS (MSAS) @ theTradeDesk

  13. Slide 13: We provide agencies a software platform

    WE PROVIDE AGENCIES A SOFTWARE PLATFORM We create room for their proprietary advantage. NOT A DISRUPTOR © theTradeDesk

  14. Slide 14: We align agencies and their brands

    We align agencies and their brands eee ees eeeee eee PUBLISHER obec ee eeeee eee cb eeeeeeeeeeeeee ADVERTISER seceueeeeeees SELL SIDE MARKETPLACE BUY SIDE fs 1 ») fe) C Zz xm oO lu FE lu Q > jag lu n © theTradeDesk

  15. Slide 15: Plus hundreds of independent agencies

    Plus hundreds of independent agencies

  16. Slide 16: Omnichannel platform with global reach

    Omnichannel platform with global reach Connected TV Online video Mobile/tablet Digital out-of-home Audio © theTradeDesk

  17. Slide 17: We buy advertising and data

    WE BUY ADVERTISING AND DATA ® ro) We power some of ©) the largest brands in oe NTA the world... se) ° 0 ..through their agencies and digital solutions companies. © theTradeDesk

  18. Slide 18: Diversified across all major verticals

    Diversified across all major verticals 2021 SPEND BY INDUSTRY 2022 SPEND BY INDUSTRY Health and fitness 20% Health and fitness 16% Food and drink 13% Food and drink 16% Automotive 10% Automotive 11% Technology and computing 8% Technology and computing 9% Shopping 8% Shopping T% Personal finance 8% H

  19. Slide 19: A strong global presence

    _Astrong global presence Our global footprint provides our clients with localized marketplace expertise NAMER EMEA 4A United States: ~ Hamburg, Germany Boulder, CO London, U.K. ‘ Chicago, IL Madrid, Spain Denver, CO Milan, Italy ae oe A on Paris, France os Angeles/Irvine, New York, NY Stockholm, Swe

  20. Slide 20: We buy

    WE BUY Even media that isn't digital will be transacted digitally, using the internet. A‘E Osrotty MB S!6 Conpe Nasr oogle Turner YAHOO! RoKuTV (72S £Srm Aol. ebay News Core FENG rox ©@ os interactive HEARST magazines Linked MD SCRIPPS theTradeDesk

  21. Slide 21: We need to access their data to help them

    WE NEED TO ACCESS THEIR DATA TO HELP THEM. WE ARE THE ALTERNATIVE | TO THE CONFLICTED PLATFORM PROVIDERS. © theTradeDesk

  22. Slide 22: Data partners

    ACYIOM QB ADBRAIN Adobe ©bluekai semasioG TAPAD @Behavior LOTAME’ *Sxperian. crosspixfel__Gocrosswise ©pususprine LUCID |[j] © |NCSolutions yeota —“grapeshot exelate >krux KANTAR /LiveRamp Peer39 * Nielsen Ssharethis > datalogix: IAS 22 factual. — ZIBlIne: OB Ninthoecinal neustar IDV Onibieterty © t

  23. Slide 23: Our Technology

    OUR TECHNOLOGY

  24. Slide 24: Our decisioning technology

    OUR DECISIONING TECHNOLOGY We built a data ma nageme nt THIRD-PARTY platform first ~~ FIRST-PARTY The buyer with the most data can DATA make the most intelligent bid. OUR DATA © theTradeDesk

  25. Slide 25: Technology

    HNOLOGI ® theTradeDesk

  26. Slide 26: We're built differently than everyone else in the industry

    We're built differently than everyone else in the industry LINE ITEMS BID FACTORS versus Limits reporting granularity, optimization The only structure that allows for options, and ability to activate data. expressiveness and fine-grain reporting. ® theTradeDesk

  27. Slide 27: ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

    ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

  28. Slide 28: The Trade Desk and agency reduced client's booking costs by half

    The Trade Desk and agency reduced client's booking costs by half Arlington Heights Glenview Evanston 1x bid for stores outside 5 to 15 miles store Location Ox (no bid) , ) Store Location outside 15 miles Store Location (@) Store Location Oak Brock Lg Downers Grove

  29. Slide 29: Our platform approach wins more of the budget

    Our platform approach wins more of the budget An example media plan AGENCY ° v Agency Marketing and Managed-service Advertising Data and promotion solution programmatic software solution technology trading desk company partner company company company Loessssesnsnesnnessnnessnnsanesnanesnnesaneseee «

  30. Slide 30: Unified ID 2.0

    Unified ID.. The what and why... eo Oe We collaborate with industry organizations to operate Unified ID 2.0 (UID2) for the open internet. We built an open-source technology to convert email address to anonymized IDs. We dedicated internal resources to build the technology. UID2 is non-proprietary an

  31. Slide 31: Secure and privacy-conscious

    • • SECURE AND OPEN-SOURCE TRANSPARENCY INDEPENDENT PRIVACY- AND AND CONTROL GOVERNANCE CONSCIOUS INTEROPERABLE

  32. Slide 32: Significant growth drivers

    SIGNIFICANT GROWTH DRIV ERS

  33. Slide 33: TV and the convergence of the internet and television

    age el TV AND US E CONVERGENCE,OF I E INTERNET AND TELEVISION © theTradeDesk

  34. Slide 34: The cost of no ads is too great for most consumers

    i= 8 8=«— sa) BBS: The cost of no ads is too great for most consumers. © theTradeDesk

  35. Slide 35: Our story in Connected TV is resonating

    Our story in Connected TV is resonating You are missing out ona core audience if you're only buying broadcast TV. a, BACETAGE] Th WP SE © theTradeDesk

  36. Slide 36: Our reach in CTV is huge

    OUR REACH IN CIV IS HUGE “Ss 90M+ Ee 120M+ CTV DEVICES © theTradeDesk

  37. Slide 37: Decisioning improves TV buying and increases CPMs for publishers

    Decisioning improves TV buying and increases CPMs for publishers TRADITIONAL TV BUYING CONNECTED TV BUYING $10 CPM $20 CPM Currently targeting broad metrics, i.e., DSP targeting includes one-to-one designated market areas (DMAs), targeting of valuable customers schedule, and dayparts. and their hous

  38. Slide 38: Key reporting metrics include: Connected TV measurement

    KEY REPORTING METRICS INCLUDE: Connected TV measurement Measure and analyze the impact of your Connected TV (CTV) campaigns to inform future strategies.

  39. Slide 39: Growth outside North America

    GROWTH OUTSIDE NORTH AMERICA © thelradeDesk

  40. Slide 40: Two thirds of global advertising spend is outside North America

    TWO THIRDS OF, GLOBAL ADVERTISING SPEND IS OUTSIDE OR.NORTI AMERICA © theTradeDesk

  41. Slide 41: Outside advertising markets

    ide advertising markets of allad dollts’spent in North America? allad dollars spent ‘ - *, : 7 4 / North America? _ v f 1FY2022 percent of spend provided at The Trade Desk's conference call for the period ended December 31, 2022, and in SEC filings. " - 2 Source: IDC Global Advertising Spend. © theT

  42. Slide 42: Shopper marketing

    SHOPPER MARKETING @ theTradeDesk

  43. Slide 43: CPG companies & retailers have a shopper marketing function

    CPG companies & retailers have a shopper marketing function of total US digital ad spend in 2020 was on retail Spend on digital retail ads in 2021 (26% growth YoY) of US shoppers use online & offline info to make purchase decisions

  44. Slide 44: Activating retail data today

    Activating retail data today al, @ theTradeDesk . Walmart 75 @\ Albertsons a Kroger meijer TARGET. Whéjreens Data from #1 Tech from #1 J © : retailer + independent DSP oourncoeen — <E wAmacys Carrefour AUDIENCES MEASUREMENT AUDIENCES MEASUREMENT A FAMILIAR TOOLS & WORKFLOWS A HOLISTIC FREQUENCY CONT

  45. Slide 45: Our focus for the future...

    Our focus for the future... Connected TV Shopper marketing Global expansion UID2 Data marketplace ana RF WN bP Supply Path Optimization OBJECTIVE. INDEPENDENT. © theTradeDesk

  46. Slide 46: How do we manage our business?

    HOW DO WE MANAGE OUR BUSINESS? WE FOCUS ON: Customer retention @ theTradeDesk

  47. Slide 47: Strong financial model

    Strong financial model Exceptional top-line growth MSA-based model with ongoing, established customer relationships Self-serve software model drives strong operating leverage Proven profitability Significant free-cash-flow

  48. Slide 48: Robust revenue growth...

    Robust revenue growth... REVENUE ($ IN MILLIONS) $600.0 $500.0 $300.0 $200.0 $100.0 $0.0 | $400.0 &ep, a © theTradeDesk Source: The Trade Desk SEC filings.

  49. Slide 49: ...delivering substantial profitability

    ...delivering substantial profitability ADJ. EBITDA ($MILLIONS) NON-GAAP NET INCOME ($MILLIONS) $300.0 $250.0 $250.0 $200.0 $200.0 $150.0 $150.0 $114 $109 $100.0 $100.0 | | $50.0 $50.0 STIMU ss il A £ © @® 29 9 © Ss FeFY Ys & $0.0 S gf SF F FX F FTF F FT XT XY VY HM é oF € €&§ €§ &§ F&F F& FC FEES S

  50. Slide 50: Investment highlights

    Investment highlights QI] revenue grew 21% YOY * — Significant outperformance vs ad-funded peers and high growth companies over the last 9 months. In addition to high growth, strong EBITDA margins and free cash flow generation. Total advertising TAM heading toward $1 trillion. CTV is our largest and

  51. Slide 51: Condensed Consolidated Statements of Operations

    ‘THE TRADE DESK, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) (Unaudited) ‘Three Months Ended March 3, 3mm Revenve S 382803 $515,323 Operating expenses © Platform operations 84,867 Sales and marketing 97,222 Technology and development 93,710 G

  52. Slide 52: Non-GAAP Financial Metrics

    Non-GAAP Financial Metrics (Amounts in thousands, except per share amounts) The following tables show the Company's non-GAAP financial metrics reconciled to the comparable GAAP financial metrics included in this release Three Months Ended _—_—___March, _ 2023 2022 Net income (loss) $s 9326 $ (14,598

The Trade Desk — Q1 2023 Earnings Presentation on 6ix