The Trade Desk, Inc. (TTD) 8 May 242024 Q1 Earnings call transcript

Greetings. Welcome to The Trade Desk First Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded.

I will now turn the conference over to your host, Chris Toth.

You may begin.

operator. you, Thank afternoon good Hello, to and everyone. The Earnings XXXX to First Quarter Call. Desk Conference Welcome Trade

On are copy call our section. Financial press the today can website Officer, and Jeff release the Laura Chief at Green; thetradedesk.com Schenkein. Investor found A be of in earnings Founder our on and Relations CEO,

which These forward-looking certain begin, beliefs statements. we information, to Q&A and of forward-looking and discussion the update our like contain some responses may that in upon may you made. Before remind represent of to the and our significantly, would as statements are forward-looking Actual assumptions date uncertainties. statements, they and vary are obligations risks I of only historical assume no such except dependent statements any results our for

beliefs actual encourage our Should our from our SEC forward-looking risk in referenced refer or to filings. assumptions or most could recent factors results any differ statements. prove of to these financial included by materially release be and our the I those implied projections to you press incorrect, in

GAAP We results, non-GAAP combined In be reporting more a our the with operational in GAAP of can non-GAAP company's the press financial GAAP reconciliation providing performance. financial addition to measures non-GAAP we present earnings found results, provides our believe data. to that A release. supplemental of our measures, meaningful representation

Jeff? turn will I now call Jeff the over and Green. that, With Founder to CEO,

joining all thank and Chris, for you today. Thanks, us

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that, questions. operator, for open the let's with And call up

[Operator Instructions] with Patterson first The question from comes Justin KeyBanc.

Connected the now and won't Investor more Great. suggesting Day, open. NBC Olympics world about a CTV wave. tidal We're just last garden leaning Disney, actually Jeff, the more TV forming you to be here. at a that Roku see be walled on It spoke programmatic, with starting will even

So where seize And that into point you tipping spend to level do flowing TV? you opportunity? think TV you about linear connected are right the investment from right how thinking that now in just are

appreciate question. Justin. Thanks, I the

going was important and long," pandemic defenses long So new It just and like got about something long ago back It's of going take a a or accelerated to cable you to you a fair at new. we've be from. are few has a then "Oh, currency it's seems talking get think look lot the ways step years. it's like where life. were of, not on and has It's amount we that a be first, adoption sure well, can saying, that come everything. I just reluctant CTV there a people that that wasn't Then started been I It to that? adopt to

think coming and has the streaming showing be every course, via Netflix been about and ads talked XX and of we've not Roku during that In Desk. place that course, Olympics today. And years would and saying People our the programmatic they're Disney+, they're except The an NBC, offering, to are doing at Trade months, that we even for service the then, of When but to I have pandemic. We've that how you the be partnership, for almost are. look for also would are predicted they Apple. AVOD last it first height the of now, in time, would coming we

big And course, announcement the last directly is roughly integrate of primary Disney+ month. all of Those our then, connected to with television. X UIDX them in announcements, the being have currency come

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content the ever. and more streaming the owners on are So than wars dependent programmatic

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last As an year. be said I in believe inventory will increase quarter, there this I

we've of year. think the heard I that theme the from owners most throughout content

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comes The next question SIG. Patil with Shyam from

the that up do I about a of massive that their strong CPMs, Jeff, in guess, there from just a influx on for out some lower perspective? the a ad-supported tier. part, think on and outlook. had more X-part video And overall is Congrats market second called I of necessarily entering And following app-supported question. inventory how first depressed Disney And lot Amazon's in another a think question, a as this competitor really that's the quarter related. good Prime market there the you of result then demand. call earnings at competitive concerns impact Amazon. out the there's the I everyone's driving the CTV that supply assuming without are more offering

all your kind So industry? of curious affects thoughts and this just guys I'm how on of you the

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Brian with from Wells Fitzgerald comes question The Fargo. next

looks until the impacts once any What industry? for UID cookies delays maybe it deprecation secondarily, on it negative the are And your the Jeff, be impacts, positive at third-party at least could 'XX. on then if have won't cookie again? away like or X.X how, And adoption? thoughts delay going continued all, now

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anywhere Times York need streamer of or Z the the happens like All Times that. of at them that LA at Y or irrespective X, New and what else

that excited on hopefully, cookie this. moving answers I'm from deprecation. to be the question So on

from comes Karasyov Cannonball Vasily with question next The Research.

to commentary in highlight that how is time as deeper for lead that Street Thank heard you volume that Jeff, think And about this a Desk? quarters perspective, the some line would I partnership can was this CTV progresses, Trade I the if of And what work? out. with Roku the know. of us so, mechanics advertising to for Roku. your ask significant week. announced is last for And would from talk to you We would to from you the like increased addition, couple

Thanks.

specifics meaningful. So The grown long-standing meaningful. the last of excited Roku very the tremendously our finally has this and materialize partnership, is And of relationship it it's over believe early had something years. days about that we're couple Channel Roku into with do but I seeing we've in the something

includes having and more So because to publisher ads, in more access as key part space. those large become they have to we into in connected we're more excited view and premium content, the that Roku a television as

adoption things about important. will that couple their UIDX, I A anticipate of think be so are think We the that partnership. we of incremental

recent most believe play the strategic role and we we most has that strengthened the relationship Our during discussions, will partner. demand their as

for think first Desk get The platform. the to I data can ACR time Roku in advertisers Trade access ever, directly

CTV those as Too perhaps that a And sense inventory comes the things, way of of is online, the requires access That is getting inventory and and us or option significantly as that rate biddable And deal. that means becoming programmatic premium, identity a of is basis and choose. to identity currency. want That fixed still guarantee pay will very they biddable. a strong increasingly get on to buyers persistent sold think premium. is undesirable why pick making a the a any much also inventory to basis big I or more is as a

been we're the it that really the the means Roku. for And So at that with relationship excited this for ever the strength partnership about represents what partnership for change of is them. I'm excited the it's best the the and future. excited and

Heaney James with from Jefferies. comes question next The

about impacts OpenPath able with properties. compared Disney's what Curious the to before? that access you're CTV you just Can inventory streaming had now amount you this to just expanded the partnership talk of how more

You bet.

what take OpenPath a Let me just back to is. step explain

the advertising more has path more digital convoluted. and Over supply the gotten years, in

was theme and in a Attorney Texas they of where whereby companies of things the then And a like lot pure Google, like options funky backdrop really sometimes introduced bidding created General it's described is Exchange are and open in that used bidding because open the the tactics once DoubleClick complaint. they Ad the

is So not way made essentially which bunch chain they offering has things SSPs effort the an chain channel which television, to In plug supply I where think the the complicated, in that the in of is there's been incentives connected to OpenPath of called and process that in an want to that, supply often us. created but efficient, for but Google, directly in largest also going make have we that the the whole with any they publishers a least more created actions. world,

a technological function management to be clear, and in want the So their for is super are publishers we I not yield representatives. business. that

it into cases, give willing visibility more more are some to value. We in more representing but charge directly buyers, opaque our we're so they're an intermediary demand than that make convoluted, can't in them the and adding

to the auction pipe to so [ of our demand pure visibility have this Disney's connected works. we've them, visibility better that So and directly we to tied they OpenPath, in the have into drag ] way into that UID directly

XXXX, We XXX% of We're by is that addressable in X and they at on stage by 'XX, XX%. the the be expect -- visibility on way, and moving said direction. eventually they Disney. automated at We XX% expect that business to that

as another for way, way television. we're do the we plugging in directly another we make addressable or XXX%, more of where clear, by things integrations plugging how toward having UID clean, us how clear the how present, all sense most power made in can think is and it make do supply the us yet directly is said to path we're by I but that transparent possible we not model be with and us and possible setting efficient So make between as can on connection that in optimal is a and done the the where Disney, connected

the So very excited with the be of in space. that to biggest one doing

question. the for thanks So

Oppenheimer. comes Jason question with next The from Helfstein

of to with it's CTV competing been want that share those and seems It dollars. just share linear, leaving like ask about a social definitely as it's dollars I a video. linear question gaining of for kind are

thoughts it embrace pushing how your for about to that, data that utilize be you kind be any about to of channel And Just perhaps also CTV competitive can customers? then seems think with to more to try that. how you

maybe so that, on comment And disagree, agree, cetera. et

bet. You

shifting all that, executed has in which, be towards for move not pre-Internet And everything actually and digitally. small world of advertising, the the minority has think even been that the advertising digitization of eventually of from digital, we will with in So digitally everything. course, transacted offline

instance. digital an run if to use in for we're print, we'll So pipes going even ad

moving to digital. is everything So

hours gone One around been of demand. charts. centers -- gravity. poles second on has or moving is whatever, off or they because content to exponentially what did. has made demand to is own, their TikTok tell thousands supply or And whether easy As often other the digital, that of every more it's content than and in they're it's it's magnitude, on more they own of results user-generated you of sort words, supply than often report been money uploading amount for spend really in of their X there's homework then X it to the grading done the YouTube have how well those really platforms you Orders

relying can seem When selling that you very when contrast you the supply/demand, partly inventory. premium use metrics the of on the And the are metrics provided cheap, that when because the by those content, it you you're reach companies and really is cheap. to are that especially

and side talk our efforts about hear the large all more, premium premium will us the all Internet, because have of And to of is spend our you monetize in Internet. side goal of the where time. the that's part more on We focused their people

I And that easier that inventory they those of associated remarks in I prepared associated to I'm more I in premium people's are user-generated of front you're that I they're it been. my that and skipping to not goes know off safety. content more to I to are up. I continue it. know be makes sort be want advertisers worse to to is attention. than getting it with know ad of getting of say following I'm the the spot. them a the amount want something. ever getting with ads the result, flee in worse And to to is of content. those I even XX-second We they as ratio don't hate more XX-year-old and with getting know And to more seeing mentioned for as get associated ads, going though be it's know where We ad I content think be want visibility.

the see the there's of as about in more the And of talk hate go. the advertisers question it worst where and about world the parts more speech most because want and for premium UGC you'll side increasingly, we more Internet. epicenter all So know more becomes Internet that that's to the premium us and the

is the that won't So think continue. to the mean I doesn't It expect side there. majority the separation going that I going But growth there of much side at better Internet data-driven to Internet kind of the which because is second gets making the premium of the go budgets be your to to of so getting those question. a premium part the way, of available in

is that You're it, in company exactly video right, actually, chain end-to-end part. you the that supply media as of social one large advantage the sort put is the to one

then they demand it don't themselves. they and get execute So

having so -- crave one it's And it's while easy objectivity, some and for and your we ecosystem them just to is not to super criticize like extent, easier the for really have company. making it can -- we while when

world, most more in of goes in to in premium chain accessible Internet to CTV, things the Because up do talking music now more that in of supply world. so effective as the much making advertisers about of that integrations premium especially like of one the when most with direction. also those open couple we content, the all the Internet we amount move we're expect just we're in or the that about more Disney, make to in And talked doing the the we're whether inventory or that with premium you dollars that journalism the

I to So paint of gravity they is good us, but side for believe, X I centers think those wanted is I is that continue are just this There all the one that premium the internal. But growing get of contract. the most, of picture of a to spend. will

Needham. comes from Martin question Next Laura with

your at great value, open leadership I leadership creates Jeff, great the that and really Internet. appreciate I believe

question on first. wanted on is I question My my that -- to So is funnel. say CTV full

television growth, a of sort making is Prime VIZIO funnel, bottom your expansion feels question industry-leading and channel, was not which Amazon My reporting, with your [indiscernible] because Walmart It like XX% television? have going in RMN option of of funnel, is buying part connected then of of feels on deal historical XXX million connected TAM the like its it CTV you're in full just is, with to thesis. me all and video on actually driven. funnel is turning So which an this top growth the you omni-funnel

yes. The short is answer

that dollars to historically course, over the in advertisers top it So because of world where the funnel are spent. have that the is, of move is biggest easiest true

the budget, They're so the are those it. in over previously in over about taking they and of put even would to way come thinking CTV. same and some assets moving And but cases, linear they'd same

TV While a therein and it lot. is bit a new the the then over metrics improved sort And ported they budgets. the improve targeting of

biggest that of world. in compete showing However, in they're why retailers getting now you that's we're on sold bringing to as you the what online with difficulty trying have who out, is those of data way big the do brick-and-mortar Amazons that trying to long improve we don't customers now And large historically point retail have amazing historically partner are to for stores can How but they many next? have with in that data really advantages world the also can part, with the to compete do had just spend say, very to that? we bear

saying, so about at of so can a if their to Walmart can Walgreens many or stores product the all Krogers, that in like it X actually it Dollar they is I think the their then their others, But own places provide Amazon. General bottom which being a for more to is are is makes Target them getting data in walls, retailer holistically a more faster, proof of we our or by or put advertiser their is so the my making they so sell exactly selling available data work bit a Albertson, more many. spin that So their sell can in flywheel data that way on how or to platform, them the many able product product others, funnel, more and easier

efficiencies it retailer very more between bottom that they win-win haven't that ends funnel. advertiser is, the being and nature, the well had the a as get up before. data And insights they by a its as as bit and So of

on we've surface possible think scratched what's I merely the there.

ahead were for that there's of Not supply that. what think dissimilar I it There's we talking chains. make lot in about from so work a to much easier. to data need just we do unlock to

imagined the meeting a pipes There's ago. We top company make advertisers connected today biggest data things bottom own they to today. retail of and of very efficient very to certain that it that many in to part the safe, can very things that that data things with with that with processes even it even by easier the world have use haven't are way they do couple the years data would are just that respecting are to keep consumers a so be that they to do that too relationship about the their for it leverage we large just amount can manual large possible we making sacred a of funnel are and that just had started the so only unlocked in and media more want

it's exciting really a time. So

from comes Benchmark the Company. Mark Zgutowicz question Next with

Jason's Just maybe social a question on to follow-up gardens. wall

categories, across 'XX. ad If since unchanged it's all been of your your you December relatively of look at mix

a XX% December the up 'XX. since move you from but we This from high quarter, indicated mid-XXs, mobile dropped haven't mid-XXs seen video

all So I mix expect dynamic CTV I'm driving sort would just have, of higher curious that what's video to initiatives are implied? as moving see guess, these

spend much time Honestly, the measuring that I on mix. don't

across the well. down really growth It the in the rates excited seeing about interested one is when other, and do continue even you're getting bigger, growth that each slice in looking necessarily doesn't to am I at But of very board. the goes when others CTV is interested because pie we're because overall the mean I'm grow, course, the Of doing though growth rate. pie the against badly,

So still mobile high whether of in growth. to whatnot, direction and heading it's we're an amazing mid-XXs XXs and

people what as spend effect When we And of or sometimes video same, small content trying them device. categorize like growth video properly versus on video of on a in just time is offline like things lot CTV described otherwise. an watching a moves the or to it's the versus on CTV actually and we honestly, watching inside phones have almost

the numbers, And content. ever and waters so creating which muddy the simply premium the distinction can just to is between do. good, show we trend value content on. We overall very used trying are is of what know very what trends they're device devices on premium intend We're sometimes it and look irrespective at not to fact, that, if that also basis, And of good. you the even devices in a

honestly about spend changes that small the don't that thinking So describing, you're I time it. much

don't out I Mark, would is And We just the just break Yes. this increase. video continue does add that exact Laura. to percentages.

The question with Mahaney Mark Evercore. from next comes

and a been come I think, year. know it's but I met regulatory I really There's [indiscernible] years, it of and rising analogy. for of this kind Google, couple home of scrutiny

decisions that some year. disclosed, the of You have stuff the and of now X that's probably you've between end mentioned trials got will the

come So was Google that roost? have now, chickens the now whatever seen of material from acceleration that you Have Trade the home towards to -- ad or actually that right The budgets actually causing awayt a shift the notable Desk.

the Yes. appreciate question. Thanks, really Mark. I

an that attribute why or how is steer CFP So of time. it when the from people I all dollar, know out sometimes Google. hard figure got from. win us we Google But get it came coming so it's -- where that of to you for mean from money much you incremental hard it's I to

we think product better. is our Sometimes that's because

I objectivity it's better. our Sometimes, think because is

of money most because Sometimes on not to going your spend it's YouTube. we're

whole those. is will just the bunch and speak of that's of speak to regulatory the a is But I case which sentiment, one think easier you. to There's I scrutiny reasons to why

in their about have with in dollars. or their the more at biggest and Google people more increasingly data and I own is and it seeking hands. own acknowledgment best some your take strategy. as the pending for the C-suites of context and a companies that your that have that is to future The when over their part money conversations to As talk especially viewed the advertising partnership world a your in and of of critical either risky faith hoping

we and us saying of will we thing same And they so we just them, are that's instead that now, one of is offering not because think do our about the what things with all that That It's that right YouTube. of part will you don't you, more do. your I of trust want own own is the way do their we That's compelling not focus actually you performance. own them details the we learn your give advertisers future. and tell where take with to always you you it We And own own you your data, it. future.

they and be partner our be complaint a of hard Texas but ecosystem, to does quantify on for is that, better think, short thought it more what regulatory been, and partner them. It to that important Attorney all feels contributing that want it people have it to spend, lot in scrutiny to them to like effect about is But answer. really that about believe them, us, many ever is the a more believe kind there have to the the and and it read than I the growth, has are of helps does cases, make and the I it's deliberate the I and where General's -- it them we us make want that see has do to do

then last question, John. And one

Markets. from Capital comes RBC question Swanson Matt with last Our

kind it But makes up for open I it advertiser just and to call of spent strategically of complexity time Jeff, of sense Great. them Yes. more. the like currency on for how versus through and buying maybe to scale guess, the to a and advertisers feel side, why from that I a thinking you've we've this of a as continues thinking CTV lot publishers CTV gets more pressure it beta kind bunch of And used important larger. programmatic terms drive direct single is start to them of those in get as glass? publishers? term back consistency can How of to pane the

just them spending single you mean on When last, say you do What payment CTV? can elaborate? you

Yes.

opposed as grow and much How direct it as the seem budgets is of to CTV, to automated small, in grows more complexity the So start idea TV and And of to processes? more your them budgets create when feasible? might grow? number the are suppliers more important to

I love Thank this question. see. you. I

the long Amazon and and that Netflix. -- only it ads. of consumers, them $X ago, I had others, maybe was have ago a wasn't X, that was more then all you and X X lot apps few all it options we used or them years that and So lot and at long when wasn't a now And ads. ago And least of on limited most just now ads. were a then or It they X there's almost Roku, using just million, as there's million $X it that more where XX have

have an can't and and in an to go the buy one particular, ads want I caps some company of you if understanding be way used. advertiser, then just of to will So frequency you're say,

using you ad about think profile this all what across watch or what I irrespective same they're have what app on. times many the show thinking apps to of have user am You it to showing of or how these be to and

scarcity. before. of the partly And number not to up. down. they've the is options of amount want, necessarily the prices because up, have premium the things for ad longer And ad need data-driven for because identity greater gone up, gone and that's so And been goes And the haven't automate and of goes really as of anonymized a the ever and be that's inventory stuff any they in fact, it's sense than persistent

of to informed some has actually there The audience make having away. will, to there in inventory The be it gone want is to decision. always And order to the the that want an you scarcity all people has exact reach. that relates amount but scarcity gone when data scarcity up, around meta extent,

that that's get the you how by so making premium. And available, more

the And on to right This are makes the all the them is of of premium. me a way path I get that out. have And think things. this like so to all figured all streamers they're doing the sense,

that them from that we of draconian the And about one that us It fragmented. really thing. true. is we in and a things you and is initially, the walled create I is perfectly be also result, be it's could said one hyper right is People doubted have the rational. to think my those, a fragmented consolidated and is what running smart it that But to that enough And is we're when said CTV no garden. seeing beginning that's people as view, have all proven do, they're that be enough very going

Some the adoption are of innovation of all but different them in the the in journey of different curve. they're or journey different on parts on right parts places of the sort They're path.

it's catching digital huge CTV. as that but than relates has I'm right well. the I is So are really it that a lots leading open about as done, audio behind the of optimistic it. CTV do premium it on to entire the in excited there's There still of content. audio up very doing And I'm to digital lot state implications I more has the think Internet what Internet. of are do think leaders do open

what journalism optimistic things And CTV. as for way. think super about but question. to open Internet Really the about very about the I'm optimistic that appreciate it really starting led they're like means right the by

much, so Matt. Thanks

John, You you. thank can close out the call now.

you participation. This you. at today's Thank and time. your conference, may disconnect for this concludes you your lines Thank