The Trade Desk, Inc. · NASDAQ:TTD

The Trade Desk — Q1 2024 Earnings Presentation

51 slides from The Trade Desk's earnings presentation, May 8, 2024

Slide 1: Investor Presentation
INVESTOR PRESENTATION
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: Most buyers are ad agencies, brands, or other technology companies
= MOST BUYERS ARE AD AGENCIES, BRANDS, OR OTHER TECHNOLOGY COMPANIES. © theTradeDesk
Slide 4: We've been profitable since 2013
2021 WE'VE BEEN First $184 2017 revenue year PROFITABLE rtm cis rans enh 200M th Sl N C E 20 1 3 $308M in “ovens SM in adj. net income, and $95M in adj EBITDA income, and $503M in adj. EBITDA 2022 First $2B quarter 2020 $1,578M in revenue, $522M in adj. net a income, and $668M in tet $1.58 o adj. EB
Slide 5: The Trade Desk by the numbers
The Trade Desk by the numbers GROSS SPEND! REVENUE? ($ in millions) EI ($ in millions) $9,611 5 661 $477 guia $203 $508 | | a | FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2023 FY2023 2009 $1,946M $9.6B $628M $772M 3000+ 2023 2023
Slide 7: And it's bigger than just a move to digital
ANDIT'S BIGGER THAN JUST A MOVE TO DIGITAL
Slide 8: The Market
THE MARKET
Slide 9: Price discovery enables healthy markets
PRICE DISCOVERY ENABLES HEALTHY MARKETS
Slide 10: We are targeting a massive TAM
We are targeting a massive TAM We believe advertising will be transacted digitally. The $900 B future of all media is digital _— and programmatic... i Eventually all media will be digital, and it will be ~$160B transacted by machines. LINEAR TELEVISION ~$135B - CEO OF AGLOBAL MEDIA DIGITAL MEDIA INV
Slide 11: Publishers/Sellers/Content Owners
Publishers/ Sellers/ Content Owners
Slide 12: We provide agencies a software platform
WE PROVIDE AGENCIES A SOFTWARE PLATFORM We create room for their proprietary advantage. NOT A DISRUPTOR © theTradeDesk
Slide 13: We align agencies and their brands
We align agencies and their brands seve eee eee eee eeee PUBLISHER oes ee ee eeeeeeee ce eeeeeeeeeueees ADVERTISER seeeeeeseeeee SELL SIDE MARKETPLACE BUY SIDE & fo) a i ‘~) Zz x= (6) lu F Ww ©) Ss jam lu no © theTradeDesk
Slide 14: Plus hundreds of independent agencies
Plus hundreds of independent agencies
Slide 15: Omnichannel platform with global reach
Omnichannel platform with global reach Connected TV Online video Mobile/tablet Digital out-of-home Audio © theTradeDesk
Slide 16: We buy advertising and data
WE BUY ADVERTISING AND DATA ® @) \We power some of () the largest brands in oo NTA the world... 9) ° a) ..through their agencies and digital solutions companies. © theTradeDesk
Slide 17: Diversified across all major verticals
Diversified across all major verticals 2022 SPEND BY INDUSTRY 2023 SPEND BY INDUSTRY Food & Drink 16% Food & Drink 18% Medical Health 12% Automotive 12% Automotive 11% Medical Health 11% Technology & Computing 9% Technology & Computing 8% Shopping 8% Home & Garden 8% Home & Garden 7% Shopping 7% Per
Slide 18: A strong global presence
_Astrong global presence Our global footprint provides our clients with localized marketplace expertise NAMER EMEA APAC United States: ~ Hamburg, Germany North Asia: Boulder, CO London, U.K. 1 Hong Kong Chicago, IL Madrid, Spain Seoul, South Korea Denver, CO Milan, Italy Shanghai, China Detroit, MI
Slide 19: We buy
WE BUY Even media that isn’t digital will be transacted digitally, using the internet. A+E @Qspotiy Me SS Conn: Nasr oogle Turner YAHOO! RouTV (2S £5rm Aol. ebay News Con FES eos © CBS Interactive HEARST magazines Linked MD SCRIPPS theTradeDesk
Slide 20: 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
Slide 21: Data partner logos
ACYIOM QB ADBRAIN Adobe ©bluekai semasio@ LOTAME’ Séxperian. TAPAD @Behavior crosspixfel__Gocrosswise ©pususprine LUCID © NCcSolutions yeota —“grapeshot fifty. § KANTAR /LiveRamp —_Peer39 * Nielsen sharethis s datalogix: IAS ne. factual. Z/2line” QO NinthDecinnal neustar IDV © theTradeDesk
Slide 22: Our Technology
OUR TECHNOLOGY
Slide 23: Our decisioning technology
OUR DECISIONING TECHNOLOGY We built a data ma nagement THIRD-PARTY platform first ~~ FIRST-PARTY The buyer with the most data can make the most intelligent bid. OUR DATA © theTradeDesk
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. © theTradeDesk
Slide 26: ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Slide 27: 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 peo Downers Grove
Slide 28: Our platform approach wins more of the budget
Our platform approach wins more of the budget An example media plan AGENCY ¢ Agency Marketing and Managed-service Advertising Data and promotion solution programmatic software solution technology trading desk company partner company company company Benssessssesseeeseoenssosnescnstecnseoesesnsts « PO
Slide 29: 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
Slide 30: Secure and privacy-conscious, open-source, independent governance
• • SECURE AND OPEN-SOURCE TRANSPARENCY INDEPENDENT PRIVACY- AND AND CONTROL GOVERNANCE CONSCIOUS INTEROPERABLE
Slide 31: Growth Drivers
SICINIBIO ANE GROWTH DRIVERS
Slide 32: Connected TV and the convergence of internet and television
CONNECTED TV AND US THE CONVERGENCE,OF THE INTERNET AND TELEVISION © theTradeDesk
Slide 33: The cost of no ads is too great for most consumers
= = c@) BS The cost of no ads is too great for most consumers. @ theTradeDesk
Slide 34: 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
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, i.e., DSP targeting includes one-to-one designated market areas (DMAs), targeting of valuable customers schedule, and dayparts. and their hous
Slide 37: 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.
Slide 38: Growth outside North America
GROWTH OUTSIDE NORTH AMERICA ® theTradeDesk
Slide 39: About two thirds of global advertising spend is outside of North America
ABOUT TWO THIRDS OF ‘GLOBAL ADVERTISING SPEND IS OUTSIDE OF NORTH AMERICA @ theTradeDesk
Slide 40: Share of ad dollars spent in North America
of allad dollars’spent in North America?s lad dollars spent ~_ “IR y North America? — ~ 7 1 FY2023 percent of spend provided at The Trade Desk’s conference call for the period ended December 31, 2023, and in SEC filings. . 2 Source: IDC Global Advertising Spend ° @ theTradeDesk
Slide 41: Shopper Marketing
SHOPPER MARKETING @ theTradeDesk
Slide 42: Activating retail data today
Activating retail data today DSP | © theTradeDesk . Walmart >< 4\ Albertsons a Kroaer ij r TARGET. Whéjreens Data from #1 Tech from #1 mee © : retailer + independent DSP conc (OP eos Carrefour AUDIENCES MEASUREMENT AUDIENCES MEASUREMENT A FAMILIAR TOOLS & WORKFLOWS A HOLISTIC FREQUENCY CONTROL A 1P
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 COOKS Manage frequency holistically
Slide 44: Our focus for the future
Our focus for the future... Connected TV Shopper Marketing Kokai Global Expansion UID2 Data marketplace Nga RF WN PF Supply Path Optimization OBJECTIVE. INDEPENDENT. ® theTradeDesk
Slide 45: How do we manage our business?
HOW DO WE MANAGE OUR BUSINESS? WE FOCUS ON: Customer retention @ theTradeDesk
Slide 46: Strong financial model
Strong financial model Exceptional top-line growth Joint Business Plan and MSA-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) $700.0 $600.0 $1,946 $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 $491 $1,578 $1,196 $836 $661 $477 $203 a $45 $114 Len, © theTradeDesk Source: The Trade Desk SEC filings.
Slide 48: With substantial profitability
..With substantial profitability ADJ. EBITDA ($MILLIONS) NON-GAAP NET INCOME ($MILLIONS) $260.0 $200.0 150.0 sisi § $100.0 | | $50.0 LHL, mT o © 29 ©» SS SeeYyYy fe @ $0.0 FF FF FF YX YY LY CO F FF OF FFF oF oF SD 9 *A A HS FS FTF F Y Y @&@ Oo fF FF FF VYKVX YY YY CCF OCF fF GF FF FFF oF GF oO Sourc
Slide 49: Investment highlights
Investment highlights Q1 revenue grew 28% year-over-year * — Significant outperformance vs ad-funded peers and high growth companies over the last 2 years. In addition to high growth, continue to produce strong EBITDA margins and free cash flow generation. Total advertising TAM is heading toward $1
Slide 50: Condensed Consolidated Statements of Operations
THE TRADE DESK, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share amounts) Revenue Operating expenses ®. Platform operations Sales and marketing Technology and development General and administrative Total operating expenses Income (loss) from operations Tot
Slide 51: Non-GAAP Financial Metrics
Non-GAAP Financial Metrics (Amounts in thousands, except per share amounts) The following tables show the Company’s non-GAAP finencial metrics reconciled to the comparable GAAP financial metrics included in this release. Three Months Ended uch 31, 2024 2023 Net income $31,660 $ 9.326 Add back (deduc

The Trade Desk — Q1 2024 Earnings Presentation on 6ix

The Trade Desk — Q1 2024 Earnings Presentation

Slide 1: Investor Presentation

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

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

Slide 4: We've been profitable since 2013

Slide 5: The Trade Desk by the numbers

Slide 6: Most effective advertising is...

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

Slide 8: The Market

Slide 9: Price discovery enables healthy markets

Slide 10: We are targeting a massive TAM

Slide 11: Publishers/Sellers/Content Owners

Slide 12: We provide agencies a software platform

Slide 13: We align agencies and their brands

Slide 14: Plus hundreds of independent agencies

Slide 15: Omnichannel platform with global reach

Slide 16: We buy advertising and data

Slide 17: Diversified across all major verticals

Slide 18: A strong global presence

Slide 19: We buy

Slide 20: We need to access their data to help them

Slide 21: Data partner logos

Slide 22: Our Technology

Slide 23: Our decisioning technology

Slide 24: Technology

Slide 25: We're built differently than everyone else in the industry

Slide 26: ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

Slide 27: The Trade Desk and agency reduced client's booking costs by half

Slide 28: Our platform approach wins more of the budget

Slide 29: Unified ID 2.0

Slide 30: Secure and privacy-conscious, open-source, independent governance

Slide 31: Growth Drivers

Slide 32: Connected TV and the convergence of internet and television

Slide 33: The cost of no ads is too great for most consumers

Slide 34: Our story in Connected TV is resonating

Slide 35: Our reach in CTV is huge

Slide 36: Decisioning improves TV buying and increases CPMs for publishers

Slide 37: Key reporting metrics include: Connected TV measurement

Slide 38: Growth outside North America

Slide 39: About two thirds of global advertising spend is outside of North America

Slide 40: Share of ad dollars spent in North America

Slide 41: Shopper Marketing

Slide 42: Activating retail data today

Slide 43: Retail data is the solution marketers have been waiting for

Slide 44: Our focus for the future

Slide 45: How do we manage our business?

Slide 46: Strong financial model

Slide 47: Robust revenue growth

Slide 48: With substantial profitability

Slide 49: Investment highlights

Slide 50: Condensed Consolidated Statements of Operations

Slide 51: Non-GAAP Financial Metrics