The Trade Desk, Inc. · NASDAQ:TTD

The Trade Desk — Q2 2024 Earnings Presentation

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

  1. Slide 1: Investor Presentation

    INVESTOR PRESENTATION

  2. 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

  3. 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

  4. Slide 4: We've been profitable since 2013

    WE'VE BEEN PROFITABLE SINCE 2013 2016 First $100M month $203M in revenue, $35M in adj. netincome, and $65M in adj. EBITDA MAY 2011 $0.08 day 2012 First $1M month 2015 First $2M and $3M day $114M in revenue, $22M in adj. net 2014 First $1M day adj, EBITDA Numbers represent total spend on platform, un

  5. Slide 5: The Trade Desk by the numbers

    The Trade Desk by the numbers GROSS SPEND? REVENUE? ($ in millions) ($ in millions) $9,611 $7,741 $6,172 $4,198 $3,130 $1,556 $2361 ge52 $1027“ | a $114 — —_— a FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 2009 $1,946M

  6. Slide 6: Advertising is...

    MOs! CIV ERIISING IS © theTradeDesk

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

    ANDIT'S BIGGER THAN JUST A MOVE TO DIGITAL

  8. Slide 8: The Market

    THE MARKET

  9. Slide 9: Price discovery enables healthy markets

    PRICE DISCOVERY ENABLES HEALTHY MARKETS

  10. Slide 10: We are targeting a massive TAM

    We are targeting a massive TAM We believe advertising will be transacted digitally. The $900B future of all media is digital _— and programmatic... ~~. Eventually all media will be digital, and it will be ~$160B transacted by machines. LINEAR TELEVISION ~$135B - CEO OF A GLOBAL MEDIA DIGITAL MEDIA I

  11. Slide 11: Publishers / Sellers / Content Owners

    Publishers/ Sellers/ Content Owners

  12. 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

  13. 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

  14. Slide 14: Plus hundreds of independent agencies

    Plus hundreds of independent agencies

  15. Slide 15: Omnichannel platform with global reach

    Omnichannel platform with global reach Connected TV Online video Mobile/tablet Digital out-of-home Audio © theTradeDesk

  16. 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

  17. 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™% P

  18. 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

  19. Slide 19: We buy

    WE BUY Even media that isn't digital will be transacted digitally, using the internet. Ceocearic (=) Spotify Me ed i TF S Os Dotdash ENN Roku TV esn COhulu EE eres 6 SWS Kesx @© cps inieractve peacock: {Spay Bloomberg = “Pfenep+ scripps FX theTradeDesk

  20. 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

  21. Slide 21: Data partners

    ACMIOM @avsrain Obleckai semasioG TAPAD @Behavior £:LOTAME’ %éxperian. crosspixel Gocrosswise Adobe © @pusispRING LUCID |[J| © NCSolutions 2 eyeota fifty. KANTAR /LiveRamp —_Peer39 * Nielsen sasharethis TAG Htegrat IDV zipline Danley eecdmp © theTradeDesk

  22. Slide 22: Our Technology

    OUR TECHNOLOGY

  23. 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

  24. Slide 24: Technology

    HNOLOGI ® theTradeDesk

  25. 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

  26. Slide 26: ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

    ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓

  27. 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

  28. 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 «

  29. 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

  30. Slide 30: Secure and privacy-conscious

    • • SECURE AND OPEN-SOURCE TRANSPARENCY INDEPENDENT PRIVACY- AND AND CONTROL GOVERNANCE CONSCIOUS INTEROPERABLE

  31. Slide 31: Significant growth drivers

    SIGNIFICANT GROWTH DRIV ERS

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

    age el TV AND US E CONVERGENCE,OF I E INTERNET AND TELEVISION © theTradeDesk

  33. 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

  34. 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

  35. Slide 35: Our reach in CTV is huge

    OUR REACH IN CIV IS HUGE “Ss 90M+ Ee 120M+ CTV DEVICES © theTradeDesk

  36. 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

  37. 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.

  38. Slide 38: Growth outside North America

    GROWTH OUTSIDE NORTH AMERICA © thelradeDesk

  39. 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

  40. Slide 40: Global advertising markets

    ide advertising markets of allad dollts’spent in North America? dollars spent ‘ - *, : 7 4 orth America? _ v f 1FY2023 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

  41. Slide 41: Shopper Marketing

    SHOPPER MARKETING @ theTradeDesk

  42. Slide 42: Activating retail data today

    Activating retail data today al, @ theTradeDesk . Walmart 75 4\ Albertsons a kro er Meijer @TARGET. Wwkégreena pounce (PO xmas Carrefour Data from #1 + Tech from #1 retailer independent DSP ( fairPrice TS Yinstacart A FAMILIAR TOOLS & WORKFLOWS A HOLISTIC FREQUENCY CONTROL A 1P DATA SHARING © theTra

  43. 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 Oe@®

  44. 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

  45. Slide 45: How do we manage our business?

    HOW DO WE MANAGE OUR BUSINESS? WE FOCUS ON: Customer retention @ theTradeDesk

  46. 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

  47. Slide 47: Robust revenue growth...

    Robust revenue growth... REVENUE ($ IN MILLIONS) $700.0 $585 s6000 $1,946 $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 $1,578 $1,196 $836 $661 $477 $308 $203 $114 a $45 vem, a © theTradeDesk Source: The Trade Desk SEC filings.

  48. Slide 48: ...With substantial profitability

    ..With substantial profitability ADJ. EBITDA ($MILLIONS) NON-GAAP NET INCOME ($MILLIONS) $250.0 197 § $200.0 $150.0 $100.0 | $50.0 Wht | I, lt | o © 29 ©» s Ss Feyey eo @ $0.0 yr Fy FY FY VM VY Ww Y ww CO OF FF FG GF FF oF oF Oo 2 © *A ® FS CS YF F Y Y @ OS fF yg ¥ GF ¥ FJ FY FT FF FY IF YX ¥ CF FF

  49. Slide 49: Investment highlights

    Investment highlights Q2 revenue grew 26% 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

  50. 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 Months Ended Six Months Ended Sane 30, June 30, 204 2B 704 Ey Revenue $ 584550 § 464.254 $ 1,075,803 $ 847.057 Operating expenses ®. Platform operations 110.459 8

  51. 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 Six Months Ended June 30, Sune 30, 2a 2035 20a 2033 Net inco

The Trade Desk — Q2 2024 Earnings Presentation on 6ix