The Trade Desk, Inc. · NASDAQ:TTD
The Trade Desk — Q1 2025 Earnings Presentation
52 slides from The Trade Desk's earnings presentation, May 8, 2025
Slide 1: Investor Relations Presentation First Quarter 2025
INVESTOR RELATIONS PRESENTATION First Quarter 2025
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
Slide 3: What we do
What We provide a platform for ad buyers. we do Most buyers are ad agencies, brands, or other technology companies.
Slide 4: We've been profitable since 2013
2022 We’ve been 2017 First $2B quarter profitable $1,578M in revenue, $522M in adj. net income, and $668M in adj. EBITDA First $5M Day and since 2013 $200M month $308M in revenue, $70M in adj. net income, and $95M in adj. EBITDA 2023 2021 First $1B month $1,946M in revenue, First $1B MAY 2011 2016 r
Slide 5: The Trade Desk by the numbers
The Trade Desk by the numbers 26% GROSS SPEND1 25% REVENUE2 23% ($ in millions) 24% ($ in millions) 32% $2,445 25% $12,041 43% 47% 26% $1,946 $9,611 34% 39% $1,578 33% $7,741 55% 51% $6,172 52% $1,196 52% 78% 86% $4,198 $836 $661 $3,130 $477 $2,351 $1,556 $308 $1,027 $114 $203 $552 FY2015 FY2016 FY2
Slide 6: The most effective advertising is targeted
The most effective advertising is targeted
Slide 7: There is a fundamental shift happening in advertising
THERE IS A AND IT’S FUNDAMENTAL SHIFT BIGGER THAN HAPPENING IN ADVERTISING JUST A MOVE TO DIGITAL
Slide 8: The market
The market ® theTradeDesk’
Slide 9: The open internet is a $935B+ market and getting bigger
Social ~$200B The open Search ~$300B internet is a Video, Audio, Display, DOOH $935B+ ~$135B market and Traditional Media getting bigger ~$300B Source: Magna 2024 Global Ad Spend Forecast, The Trade Desk Estimates
Slide 10: Price discovery enables healthy markets
Price discovery enables HEALTHY MARKETS
Slide 11: The pie is getting bigger while waste is being pushed out
The pie is getting bigger while waste is being pushed out Managed-service DSPs and ad networks Supply-side Networks exchange Publishers/ Self-serve platform Sellers/ Demand-side Advertisers/ $0.55 Content (SSP) and yield Display Mobile Social TV+ platform (DSP) Agencies $1.00 Owners management Ad se
Slide 12: We provide agencies a software platform
We provide agencies a software platform. We create room for their proprietary advantages. We are an enabler, not a disruptor.
Slide 13: We align agencies and their brands
We align agencies and their brands PUBLISHER ADVERTISER SELL SIDE MARKETPLACE BUY SIDE TECHNOLOGY SERVICE
Slide 14: With hundreds of different players
With hundreds of different players ADVERTISER AGENCY DATA MANAGEMENT DSP PLATFORM Plus hundreds of independent agencies AD EXCHANGE SSP PUBLISHER
Slide 15: Omnichannel platform with global reach
MOBILE NATIVE TABLET DISPLAY AUDIO Omnichannel platform with global reach CONNECTED TV ONLINE VIDEO DIGITAL OUT OF HOME
Slide 16: We power some of the largest brands in the world
We buy advertising and data We power some of the largest brands in the world… …through their agencies and digital solutions companies.
Slide 17: Diversified across all major verticals
Diversified across all major verticals 2024 SPEND BY INDUSTRY 2023 SPEND BY INDUSTRY Food & Drink 18% Food & Drink 18% Automotive 12% Automotive 12% Medical Health 11% Medical Health 11% Home & Garden 8% Technology & Computing 8% Technology & Computing 8% Home & Garden 8% Shopping 7% Shopping 7% Per
Slide 18: A strong global presence
A strong global presence Our global footprint provides our clients with localized marketplace expertise NAMER EMEA APAC United States: Canada: Dubai, UAE North Asia: Southeast Asia: Australia: Ventura, CA – HQ Toronto Hamburg, Germany Hong Kong Bengaluru, India Melbourne Bellevue, WA London, U.K. Se
Slide 19: We buy the whole internet
WE BUY THE WHOLE INTERNET Even media that isn’t digital will be transacted digitally, using the internet.
Slide 20: We are the alternative to the conflicted platform providers
WE NEED TO ACCESS THEIR AGENCIES (AND THEIR BRANDS) NEED A DATA TO HELP THEM. TECHNOLOGY WE ARE THE ALTERNATIVE PARTNER TO TRUST WITH THEIR DATA. TO THE CONFLICTED PLATFORM PROVIDERS.
Slide 21: We buy data to make better decisions
We buy data to make better decisions We focus on being the best partner for our data providers.
Slide 22: Our technology
Our technology ® theTradeDesk’
Slide 23: We built a data management platform first
OUR DECISIONING TECHNOLOGY We built a data THIRD-PARTY DATA OUR DATA management platform first FIRST-PARTY The buyer with the most data can DATA make the most intelligent bid. DMP
Slide 24: Expressiveness is central to our technological advantage
Expressiveness is central to our technological advantage
Slide 25: 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.
Slide 26: The most transparent and most detailed reporting
GOAL The most transparent and SIMPLIFIED USER INTERFACE most detailed reporting “Expressiveness” at work REPORTING GRAINS Report out on over 200 performance measures ✓ Conversion touch ✓ Win rate ✓ Player skip ✓ View-through ✓ Total seconds in view ✓ Small player conversion ✓ Partner viewable impres
Slide 27: The Trade Desk and agency reduced client's booking costs by half
The Trade Desk and agency reduced client’s EXPRESSIVENESS = 15,360 BID PERMUTATIONS booking costs by half 3.5 3 MULTIPLIER 2.5 1.75× bid for stores within 5 miles 2 1× bid for stores 1.5 outside 5 to 15 miles 1 0× (no bid) outside 15 miles 0.5 0 Start 30m 2h 24h 2d 4d 7d 14d 30d TIME SINCE LAST SITE
Slide 28: Our platform approach wins more of the budget
AN EXAMPLE MEDIA PLAN Our platform approach wins more of the budget AGENCY 40% 20% 10% 10% 10% 10% Agency Marketing and Managed-service Advertising Data and promotion solution programmatic software solution technology trading desk company partner company company company POWERED BY
Slide 29: The what and why of UID2
The what and why… • 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. • We believe the open internet must conti
Slide 30: Because the future of identity matters
A better foundation for identity Because the future of identity matters IDENTIFY ACTIVATE Represents an upgrade, not a cookie replacement. RampID Your • Consistent identifier across devices and browsers CRM data • Interoperable Other IDs SECURE AND OPEN-SOURCE PRIVACY- TRANSPARENCY AND INDEPENDENT C
Slide 31: Significant growth drivers
Significant growth drivers ® theTradeDesk’
Slide 32: Connected TV and us
CONNECTED TV AND US The convergence of the internet and television
Slide 33: The future of TV is ad funded
The future of TV is ad funded. The cost of no ads is too great for most consumers.
Slide 34: Our story in Connected TV is resonating
Our story in Connected TV is resonating You are missing out on a core audience if you’re only buying broadcast TV.
Slide 35: Our reach in CTV is huge
Our reach 90M+ in CTV HOUSEHOLDS is huge 120M+ CTV DEVICES
Slide 36: 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, DSP targeting includes one-to-one i.e., designated market areas targeting of valuable customers (DMAs), schedule, and dayparts. and their hous
Slide 37: Connected TV measurement
Connected TV Key reporting metrics include: measurement • Reports across video screens (over-the-top, desktop, mobile) • Attribution across devices Measure and analyze • Impressions delivered the impact of your Connected TV (CTV) • Reach and frequency campaigns to inform • Video completion rates fut
Slide 38: Growth outside North America
GROWTH OUTSIDE NORTH AMERICA
Slide 39: About two thirds of global advertising spend is outside North America
About two thirds of global advertising spend is outside of North America
Slide 40: Top worldwide advertising markets
Top 20 worldwide advertising markets ~88% TTD spend in North ~12% America1 (in 2024) TTD spend Internationally1 (in 2024) 40% of all ad dollars spent 60% in North America2 of all ad dollars spent outside North America2 1 FY2024 percent of spend provided at The Trade Desk’s conference call for the pe
Slide 41: Shopper marketing
SHOPPER MARKETING
Slide 42: Activating retail data today
Activating retail data today DSP Tech from #1 Data from #1 retailer + independent DSP FAMILIAR TOOLS AND WORKFLOWS HOLISTIC FREQUENCY CONTROL 1P DATA SHARING
Slide 43: Retail data is the solution marketers have been waiting for
Retail data is the solution marketers have been waiting for Deterministic and future-proof Customer lifetime data Increase market share Manage frequency holistically
Slide 44: Our focus for the future
Our focus for the future… 1. Connected TV 2. Shopper marketing OBJECTIVE. 3. Kokai 4. Global expansion INDEPENDENT. 5. UID2 6. Data marketplace TRANSPARENT. 7. Supply Path Optimization
Slide 45: How do we manage our business?
How do we manage our business? WE FOCUS ON Culture Customer Spend Efficiency retention growth
Slide 46: Strong financial model
Strong financial model • Exceptional top-line growth • MSA and Joint Business Plan-based model with ongoing, established customer relationships • Self-serve software model drives strong operating leverage • Proven profitability • Significant free-cash-flow
Slide 47: Robust revenue growth
Robust revenue growth… REVENUE ($ IN MILLIONS) $800.0 $700.0 $2,445 $616 $600.0 $1,946 $500.0 $1,578 $400.0 $1,196 $300.0 $836 $661 $200.0 $477 $308 $203 $100.0 $114 $45 $0.0 Source: The Trade Desk SEC filings.
Slide 48: …with substantial profitability
…with substantial profitability ADJ. EBITDA ($MILLIONS) NON-GAAP NET INCOME ($MILLIONS) $350.0 $400.0 $350.0 $300.0 $300.0 $250.0 $250.0 $208 $200.0 $165 $200.0 $150.0 $150.0 $100.0 $100.0 $50.0 $50.0 $0.0 $0.0 Source: Company filings. Adjusted EBITDA excludes depreciation and amortization expense,
Slide 49: Investment highlights
1. Q1 2025 revenue grew 25% year-over-year Investment 2. In addition to high growth, continue to produce strong highlights EBITDA margins and free cash flow generation. 3. Total advertising TAM is heading toward $1 trillion. 4. CTV is our largest and fastest growing channel and will be for the fores
Slide 50: Q1 2025 GAAP financial information
Q1 2025 GAAP financial information
Slide 51: Supplemental non-GAAP information
Supplemental non-GAAP information
Slide 52: Thank you.
Thank you. © thelradeDesk’