The Trade Desk, Inc. · NASDAQ:TTD
The Trade Desk — Q3 2023 Earnings Presentation
51 slides from The Trade Desk's earnings presentation, Nov 9, 2023
Slide 1: Investor Presentation Third Quarter 2023
INVESTOR PRESENTATION THIRD QUARTER 2023
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
<= HAT EF DO MOST BUYERS ARE AD AGENCIES, BRANDS, OR OTHER TECHNOLOGY COMPANIES. © theTradeDesk
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 $1M day Numbers represent total spend on platform, unless otherwise stated, Adjusted net income and EBITDA typically exclu
Slide 5: The Trade Desk by the numbers
The Trade Desk by the numbers GROSS SPEND? REVENUE? ern 9, ($ 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
Slide 6: Advertising is...
MOs! CIV ERIISING IS © theTradeDesk
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 $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
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 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
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 ® ro) We power some of ©) the largest brands in oe NTA the world... se) ° 0 ..through their agencies and digital solutions companies. © theTradeDesk
Slide 17: 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
Slide 18: 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
Slide 19: 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
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 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
Slide 22: Our Technology
OUR TECHNOLOGY
Slide 23: 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
Slide 24: Technology
HNOLOGI ® 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: Feature comparison checklist
✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
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 Lg 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 ° v Agency Marketing and Managed-service Advertising Data and promotion solution programmatic software solution technology trading desk company partner company company company Loessssesnsnesnnessnnessnnsanesnanesnnesaneseee «
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
• • SECURE AND OPEN-SOURCE TRANSPARENCY INDEPENDENT PRIVACY- AND AND CONTROL GOVERNANCE CONSCIOUS INTEROPERABLE
Slide 31: Significant growth drivers
SIGNIFICANT GROWTH DRIV ERS
Slide 32: Convergence of the internet and television
age el TV AND US E CONVERGENCE,OF I E INTERNET AND TELEVISION © theTradeDesk
Slide 33: 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
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 35: Our reach in CTV is huge
OUR REACH IN CIV IS HUGE “Ss 90M+ Ee 120M+ CTV DEVICES © 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: 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 © thelradeDesk
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: Worldwide 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
Slide 41: Shopper Marketing
SHOPPER MARKETING @ theTradeDesk
Slide 42: 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
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 OHO
Slide 44: Our focus for the future
Our focus for the future... Connected TV Shopper Marketing Kokai Global Expansion UID2 Data marketplace Ngo a RF WN bP 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) $600.0 ee ee e § $8 $ $8 8 64 gs gs g§ 8 8 > 8 $ 8 & §&§ 8 8 $8 8 8 2&2 8B & & 3 i20) © theTradeDesk Source: The Trade Desk SEC filings.
Slide 48: ...With substantial profitability
..With substantial profitability ADJ. EBITDA ($MILLIONS) NON-GAAP NET INCOME ($MILLIONS) $250.0 $200.0 $167 $150.0 $100.0 $50.0 bitte soo Source: Company filings. Adjusted EBITDA excludes depreciation and amortization expense, interest expense, income taxes, stock-based compensation, and preferred s
Slide 49: Investment highlights
1. Q3 revenue grew 25% YOY, accelerating sequentially. * — Significant outperformance vs ad-funded peers and high growth companies over the last 12-18 months. 2. In addition to high growth, strong EBITDA margins and free cash flow generation. 3. Total advertising TAM heading toward $1 trillion. Inve
Slide 50: Condensed Consolidated Statements of Operations
THE TRADE DESK, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS: (Amounts in thousands, except per share amounts) (Unaudited) Three Mouths Ended ‘Nine Months Ended September 50, September 50, 2033 2 23 22 Revenue S 493266 § 394.773 $ 1340323 S 1087058 Operating expenses ©: Platfona operations 9
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 financial metrics reconciled to the comparable GAAP financial metrics included in this release. Three Months Ended Nine Months Ended September 30, September 30, 2033 203 2023