The Trade Desk, Inc. · NASDAQ:TTD

The Trade Desk — Investor Day (March 2019)

21 slides from The Trade Desk's investor day presentation, Mar 6, 2019

  1. Slide 1: Forward looking statements and Non-GAAP Financials

    Forward looking statements and Non-GAAP Financials This presentation is for informational purposes only and is not an offer to sell securities or a solicitation of an offer to buy any securities, and may not be relied upon in connection with the purchase or sale of any security. This presentation is

  2. Slide 2: Paul Ross, Chief Financial Officer

    Paul Ross Chief Financial Officer

  3. Slide 3: Financial Update

    Financial Update © theTradeDesk . Investor Day

  4. Slide 4: Financial principles

    Financial principles Growth Investment Managing Capital 4

  5. Slide 5: Growth

    Growth

  6. Slide 6: By the numbers

    by the numbers Revenue (1) 33E% Gross Spend (2) 36E% ($ in millions) ($ in millions) 55% $637E 51% $3,200 52% 52% $477 $2,351 78% 86% $308 $1,556 156% 161% $203 $1,028 $114 $552 $45 $211 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019E FY2014 FY2015 FY2016 FY2017 FY2018 FY2019E (1) FY2019E guidance of $63

  7. Slide 7: Our market share continues to increase

    Our market share continues to increase vs. Magna global RTB programmatic 9.7% 8.5% 7.0% 5.7% 3.9% 2.3% 2014 2015 2016 2017 2018 2019E Magna Global RTB $9.1 $14.1 $18.0 $22.4 $27.6 $33.0E Programmatic $b $211 $552 $1,028 $1,556 $2,351 $3,200E Spend $m (1) Source: Magna Global (2) The Trade Desk FY201

  8. Slide 8: Consistently outgrowing digital

    Consistently outgrowing digital 11X 4X 3X 3X 3X 2015 2016 2017 2018 2019E TTD Spend Growth % 161% 86% 52% 51% 36%E IDC Digital Growth % 15% 21% 19% 16% 14%E (1) Source: IDC (2) The Trade Desk FY2019E Total Gross Spend guidance of $3.2 billion provided February 21, 2019, at The Trade Desk’s conferenc

  9. Slide 9: Clients and advertisers

    2016 2017 2018 566 656 742 clients clients clients 28,000 37,000 46,000 advertisers advertisers advertisers Source: The Trade Desk

  10. Slide 10: Loyal and stable client base

    Loyal and stable client base Annual Cohort Growth (Annual Gross Spend) ($ in millions) Annual Cohort Growth (Annual Gross Spend) $2.5 Cohort CAGRs $2.0 • 50% gross spend expansion in 2018 from existing customers 2016 Cohort, 97% $1.5 • 95%+ customer retention 2015 Cohort, 59% $1.0 2014 Cohort, 106%

  11. Slide 11: Revenue from MSAs and self-service campaigns

    95+% 95+% of revenue of campaigns is from MSAs are self-service Source: The Trade Desk

  12. Slide 12: Diversified across all major verticals

    Diversified across all major verticals 2018 Spend by Industry 2017 Spend by Industry Technology & Health & Fitness 14% Computing 15% 18% 18% Food & Drink Food & Drink Health & Fitness Automotive Automotive 4% Technology & 4% 13% 13% Computing Personal Finance Personal Finance 5% 5% Business Shopping

  13. Slide 13: Investments

    Investments

  14. Slide 14: Consistency in operating plan

    Consistency in operating plan Consistently guided to high 20’s adjusted EBITDA percentage 2017 2018 2019E Adjusted EBITDA 26.7% 29.0% 28.6% Source: The Trade Desk. Company Adjusted EBITDA Guidance as a percent of Revenue Guidance. Guidance provided in Company’s Earnings Press Release on February 16,

  15. Slide 15: Long term model profile

    Long term model profile 2016 2017 2018 Long Term Target Operating Expenses1 Platform Operations 20% 21% 24% ~21% Sales and Marketing 23% 20% 18% ~18% Technology and Development 13% 17% 18% ~16% General and Administrative 16% 19% 18% ~10% Operating Margin 28% 23% 22% 35% Adjusted EBITDA (% of Rev) 32

  16. Slide 16: Profitability

    …Profitability Adj. EBITDA1 ($ in thousands) GAAP Net Income ($ in thousands) $182,000E1 $159,436 $88,140 $95,372 $50,798 $65,221 $39,159 $20,482 $15,929 $5,683 $5 2014 2015 2016 2017 2018 2019E 2014 2015 2016 2017 2018 1. FY2019E guidance of $182 million adjusted EBITDA on February 21 2019, at The

  17. Slide 17: Managing Capital

    Managing Capital

  18. Slide 18: Working capital management

    Working capital management Working Capital Management (AP and AR) • Increasing sequential liability with vendors – “we don’t pay until we get paid” • More aggressive collecting • Longer payment terms for more recent and newer vendors Source: The Trade Desk - Graph indicates the difference between Da

  19. Slide 19: Strong balance sheet

    Strong balance sheet $207M in CASH — Generated Positive Free Cash Flow $250,000 NO DEBT in 16, 17 and 18 Drivers for Future Free Cash Flow $200,000 • EBITDA/Change in WC ratio is >1 • As EBITDA improves FCF is expected to improve $150,000 $100,000 $50,000 $- 2017 Q117 Q217 Q317 Q417 2018 Q118 Q218 Q

  20. Slide 20: Our growth & EBITDA in context

    Our growth & EBITDA in context 4-year Revenue CAGR (2014-2018) 80.9% 79.6% Median = 45.3% 54.0% 47.3% 45.5% 45.5% 45.1% 42.0% 41.2% 26.7% 21.4% 20.1% Adjusted EBITDA Margin (2018) 52.3% Median = 6.2% 35.0% 33.4% 29.6% 16.9% 9.4% 2.9% (4.8%) (5.7%) (6.6%) (8.0%) (16.6%)

  21. Slide 21: Thank you

    Thank you © theTradeDesk . Investor Day

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