The Trade Desk, Inc. · NASDAQ:TTD

The Trade Desk — Investor Day (March 2019)

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

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
Slide 3: Vision and Strategy for Growth
Vision and Strategy for Growth
Slide 4: We fuel the world's growth
We fuel the world’s growth The importance of advertising is going up
Slide 5: Advertising is a 725 billion dollar industry
Advertising is a 725 billion dollar industry Source: IDC Total Advertising
Slide 6: The march to 1 trillion
The march to 1 trillion TAM – total advertising vs. GDP $1,002 $966 $929 $893 $859 $826 $790 $756 $725 $693 $659 5.2% 4.9% 4.4% 4.5% 4.5% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 3.7% 3.7% 3.7% 3.7% 3.6% 3.6% 3.6% 3.6% 3.6% 3.6% 3.6% 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Total Ad Spend GDP Gro
Slide 7: The march to 1 trillion: digital vs. total advertising
The march to 1 trillion Digital vs. total advertising $1,002 $968 $933 $898 $862 $826 $790 $756 $724 $693 $659 $621 $548 $586 $465 $507 $384 $423 $272 $308 $346 $234 $425 $421 $415 $410 $406 $403 $397 $391 $386 $382 $381 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Non-Digital Ad Spend ($)
Slide 8: The march to 1 trillion: digital and programmatic
The march to 1 trillion Digital and programmatic vs total advertising $1,002 $968 $933 $898 $101 $862 $89 $826 $78 $790 $68 $756 $59 $724 $51 $693 $39 $45 $659 $33 $22 $28 $465 $507 $548 $586 $621 $308 $346 $384 $423 $234 $272 $402 $394 $382 $372 $362 $352 $338 $323 $308 $293 $280 2017 2018 2019 202
Slide 9: ~100% will eventually be programmatic
~100% will eventually be programmatic
Slide 10: The march to 1 trillion: by region
The march to 1 trillion By region Total Ad Spend by Region ($) (2018) Total Ad Spend by Region ($) (2027) $242 $407 $399 $295 $156 $197 Americas EMEA APAC Americas EMEA APAC Sources: https://www.emarketer.com/Report/Worldwide-Ad-Spending-eMarketer-Forecast-2017/2002019 GDP Growth: World Bank Global
Slide 11: What happened since our last Investor Day? Macro
What happened since our last Investor Day? Macro
Slide 12: Mark Zuckerberg before Congress
Mark Zuckerberg before Congress https://media.wired.com/photos/5acd1a0959c99745767035de/master/w_1164,c_limit/ZuckDay1-RTX5LUM4.jpg
Slide 13: AppNexus bought by AT&T
AppNexus bought by AT&T
Slide 15: Google removes the ID
Google removes the ID
Slide 16: Direct to consumer changes everything
Direct to consumer changes everything
Slide 17: What happened since our last Investor Day? Micro
What happened since our last Investor Day? Micro
Slide 18: Acceleration
Acceleration 2018 = 55% Y/Y revenue growth
Slide 19: Biggest fraud prevention deal of advertising history
Biggest fraud prevention deal of advertising history
Slide 20: We acquired Ad Brain and estimate the ROI to be about 20X
We acquired Ad Brain and estimate the ROI to be at about 20X so far
Slide 22: CTV: 600% spend CAGR since 2016 launch
CTV: 600% spend CAGR since 2016 launch
Slide 24: Non US grew from 6.6% to 14% from 2015 to 2018
Non US grew from 6.6% to 14% from 2015 to 2018
Slide 25: Slide 25
Slide 26: Different than most unicorns we optimized to culture
Different than most unicorns we optimized to culture
Slide 27: We're doing to business what scrum did to software development
We‘re doing to business what scrum did to software development Bellevue Seattle London Paris Chicago Shanghai San Seoul Francisco Toronto Hamburg San Jose Hong Kong Tokyo Boulder New York Madrid Ventura Denver Singapore Jakarta Los Angeles Irvine Sydney
Slide 28: And we are recognized for it
And we are recognized for it FORTUNE FORTUNE Forbes The 50 Best Workplaces in Technology How the 150 Best Medium e008 and Small Workplaces Race Ahead Small & Medium Companies e000 The Best Software Companies To Work For In 2018, According To Glassdoor 2. The Trade Desk ir glassdoor © theTradeDesk .
Slide 30: Why TTD is leading?
Why TTD is leading? 1. We care 2. Our employees matter 3. We align our interests with our clients
Slide 31: Help agencies level up their business model
Help agencies level up their business model
Slide 32: Ad Agencies matter
Ad Agencies matter We are not a disruptor. We enable.
Slide 33: We are SaaS like, pointed at data, advertising and marketing
We are SaaS like, pointed at data, advertising and marketing • We are not a media company • We have 95%+ client retention, and a unique and more profitable business model than SaaS
Slide 34: The basic tenets of our strategy 10 years ago
The basic tenets of our strategy 10 years ago • Price discovery is foundational to healthy • Sum of tech take rate is 25-30% markets (sell side and exchange side is too high right now) • Data driven is better than guessing • Buy-side aggregates around 3 to 10 players • At least one will be independe
Slide 35: We are not competing with Google & Facebook. Media is.
We are not competing with Google & Facebook. Media is.
Slide 36: Objectivity matters more as time goes on
Objectivity matters more as time goes on
Slide 38: Our 5 goals
a OUR 5 GOALS —— OVER 5 YEARS ———
Slide 39: CTV and video will be our largest channel
1 CTV and video will be our largest channel All forms of video (linear TV, CTV, video, and mobile video) are nearly half of all advertising Source: IDC
Slide 40: China will become a top 3 market for TTD
2 China will become a top 3 market for TTD
Slide 41: Our ID footprint will be larger than any one company
3 Our ID footprint will be larger than any one company
Slide 42: Greater reach potential
Greater reach potential Facebook reaches YouTube reaches The Trade Desk reaches 2.2B 1.8B 3.5B people people people
Slide 43: Data at 2x the pace of media
4 Data at 2x the pace of media 2018 data grew 1.6X 2H2018 data grew 2X (Next Wave)
Slide 44: We will change media planning
5 We will change media planning We shipped a media planner!
Slide 46: Data driven versus guessing
Data driven versus guessing 1X58) 9X =(- a 2 5 5 at t tat” . (C080 - p00 dy st lo -f at log, b rl0Ea cast 7 sind- ae pe | = j v — cos ‘Ae 0 | @thettadedesk ; Nhvestor Day,
Slide 47: We are protecting our culture and scaling
We are protecting our culture and scaling
Slide 49: Our investment strategy
Our investment strategy
Slide 51: CTV
jeTradeDesk . Investor Day
Slide 52: The great parts of traditional TV
The great parts of traditional TV 1. Reach 2. Common experience 3. Scale 4. Efficacy
Slide 53: The new reality TV
The new reality TV 1. Reach 2. Customized experience / OD 3. Higher CPMs and fewer ads 4. Higher content cost
Slide 54: Inventory growth Dec 2017/Dec 2016
1000% Inventory growth Dec 2017/Dec 2016
Slide 56: 6X 2018 CTV inventory availability over 2017
6X 2018 CTV inventory availability over 2017
Slide 58: Data driven OTT may be the best scaled advertising ever
Data driven OTT may be the best scaled advertising ever
Slide 59: TV measurement will change everything
TV measurement will change everything.
Slide 60: GTM: full court press to MVPDs, digital channels, huge companies
GTM: full court press to MVPDs, digital channels, huge companies
Slide 61: Adjusted EBITDA at 40%
Adjusted EBITDA at 40% Incidentally, take rates will remain at historical ranges of 15 to 20%
Slide 62: TTD is an investment in programmatic advertising for the whole internet
1. We’re self-service omnichannel (all decisioned digital) software platform 2. 95%+ of our spend coming through MSAs and is relatively predictable 3. Our tech is measurably better at decisioning 4. We are objective and align our interests with media buyers 5. We have a massive TAM 6. Best positione
Slide 63: Investors, we thank you!
Investors, we thank you!
Slide 64: The end
The end

The Trade Desk — Investor Day (March 2019) on 6ix

The Trade Desk — Investor Day (March 2019)

Slide 1: Forward looking statements and Non-GAAP Financials

Slide 2: Investor Day. Jeff Green, Founder and CEO

Slide 3: Vision and Strategy for Growth

Slide 4: We fuel the world's growth

Slide 5: Advertising is a 725 billion dollar industry

Slide 6: The march to 1 trillion

Slide 7: The march to 1 trillion: digital vs. total advertising

Slide 8: The march to 1 trillion: digital and programmatic

Slide 9: ~100% will eventually be programmatic

Slide 10: The march to 1 trillion: by region

Slide 11: What happened since our last Investor Day? Macro

Slide 12: Mark Zuckerberg before Congress

Slide 13: AppNexus bought by AT&T

Slide 14: OpenX does layoffs

Slide 15: Google removes the ID

Slide 16: Direct to consumer changes everything

Slide 17: What happened since our last Investor Day? Micro

Slide 18: Acceleration

Slide 19: Biggest fraud prevention deal of advertising history

Slide 20: We acquired Ad Brain and estimate the ROI to be about 20X

Slide 21: Megagon adoption over 75%

Slide 22: CTV: 600% spend CAGR since 2016 launch

Slide 23: TVB

Slide 24: Non US grew from 6.6% to 14% from 2015 to 2018

Slide 25: Slide 25

Slide 26: Different than most unicorns we optimized to culture

Slide 27: We're doing to business what scrum did to software development

Slide 28: And we are recognized for it

Slide 29: The Future

Slide 30: Why TTD is leading?

Slide 31: Help agencies level up their business model

Slide 32: Ad Agencies matter

Slide 33: We are SaaS like, pointed at data, advertising and marketing

Slide 34: The basic tenets of our strategy 10 years ago

Slide 35: We are not competing with Google & Facebook. Media is.

Slide 36: Objectivity matters more as time goes on

Slide 37: Amazon

Slide 38: Our 5 goals

Slide 39: CTV and video will be our largest channel

Slide 40: China will become a top 3 market for TTD

Slide 41: Our ID footprint will be larger than any one company

Slide 42: Greater reach potential

Slide 43: Data at 2x the pace of media

Slide 44: We will change media planning

Slide 45: We can build 8 next waves

Slide 46: Data driven versus guessing

Slide 47: We are protecting our culture and scaling

Slide 48: © theTradeDesk . Investor Day

Slide 49: Our investment strategy

Slide 50: © theTradeDesk . Investor Day

Slide 51: CTV

Slide 52: The great parts of traditional TV

Slide 53: The new reality TV

Slide 54: Inventory growth Dec 2017/Dec 2016

Slide 55: CTV spend Q118/Q117

Slide 56: 6X 2018 CTV inventory availability over 2017

Slide 57: 9X CTV spend 2018/2017

Slide 58: Data driven OTT may be the best scaled advertising ever

Slide 59: TV measurement will change everything

Slide 60: GTM: full court press to MVPDs, digital channels, huge companies

Slide 61: Adjusted EBITDA at 40%

Slide 62: TTD is an investment in programmatic advertising for the whole internet

Slide 63: Investors, we thank you!

Slide 64: The end