Release Date: May 08, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- The Trade Desk Inc (TTD, Financial) reported a strong revenue growth of 28% year-over-year, indicating robust financial performance.
- CTV (Connected TV) continues to be the fastest-growing channel for The Trade Desk Inc (TTD), highlighting the company's successful expansion in this area.
- The Trade Desk Inc (TTD) has successfully integrated UID2 across premium parts of the open Internet, enhancing identity and authentication frameworks.
- Significant partnerships with major industry players like Disney, NBCU, and Roku have been established, expanding The Trade Desk Inc (TTD)'s market opportunities.
- The introduction of Kokai platform innovations has enabled The Trade Desk Inc (TTD) to offer advanced data-driven buying options to clients, improving client outcomes and business growth.
Negative Points
- Despite strong growth, The Trade Desk Inc (TTD) faces intense competition from major tech companies and other advertising platforms, which could impact market share.
- The reliance on continuous innovation and the rapid pace of technological change in the advertising industry pose ongoing challenges for The Trade Desk Inc (TTD).
- Regulatory uncertainties and potential changes in data privacy laws could impact The Trade Desk Inc (TTD)'s operations and client data strategies.
- The complexity of integrating new technologies and platforms, such as UID2 and Kokai, may result in operational challenges and increased costs.
- Market saturation and the high penetration rate in digital advertising could slow down future growth rates for The Trade Desk Inc (TTD).
Q & A Highlights
Q: Jeff, at the last Investor Day, you spoke about Connected TV forming a tidal wave. We're now starting to see Disney, Roku, and even NBC with the Olympics leaning more on programmatic, suggesting that CTV won't be just a walled garden world here. It will actually be more open. So where do you think you are right now in just that tipping point from linear TV spend flowing into connected TV? And how are you thinking about the right investment level to seize that opportunity?
A: Jeffrey Terry Green - The Trade Desk, Inc. - Co-Founder, Chairman, President & CEO: Thanks, Justin. I appreciate the question. So first, I think it's just important to take a step back and just look at where we've come from. It's been a few years. It wasn't that long ago that people were saying, oh, cable has got a long life. It's not going to be that long, and then the pandemic accelerated everything. Then we started talking about a new currency like UID2 and there was a fair amount of, well, are you sure you can get adoption on that? It seems like CTV has a lot of defenses or ways that it's going to be reluctant to adopt something new.
Q: Congrats on another really strong quarter and outlook. I had a 2-part question. Jeff, I guess, following up on the first question, how do you think about the impact of Amazon's ad-supported Prime video offering from a competitive perspective? And then for the second part, this is related. Disney called out in their earnings call that there's a lot more supply in the market as a result of the competitor entering the ad-supported tier. And I think everyone's assuming that that's Amazon. And there are just some concerns out there that a massive influx of CTV inventory at lower CPMs, good depressed the CTV market overall without necessarily driving more demand. So I'm just curious kind of your thoughts on how all of this affects you guys and the industry.
A: Jeffrey Terry Green - The Trade Desk, Inc. - Co-Founder, Chairman, President & CEO: You bet. So can you remind me of the first part of your question? So how does the increase in supply -- I get on the second part. Remind me of the first part of your question?
Q: Jeff, it looks like third-party cookies won't be going away now for at least until '25. What are your thoughts on the cookie deprecation delay once again? And how, if at all, it impacts the industry? And then maybe secondarily, could the continued delays have any impacts, positive or negative, on UID 2.0 adoption?
A: Jeffrey Terry Green - The Trade Desk, Inc. - Co-Founder, Chairman, President & CEO: Great. And so first, I'm glad to get this question on cookie deprecation not because I haven't heard it before but in an effort to hopefully put it to bed for at least a little while until the next headline hit. I've been blown away by how much in trade press, there has been discussion about cookies. And maybe it's because I felt like it was a very important topic to talk about 2 or 3 years ago, but I just feel like we already had all these conversations.
Q: Jeff, I would like to ask you to talk about the deeper partnership with Roku that was announced last week. We heard some commentary from Roku. And from your perspective, what would you highlight for us that is significant for the Street to know? And in addition, as this progresses, I think the time line is a couple of quarters out. Can this lead to increased volume of CTV advertising for The Trade Desk? And if so, how would that mechanics work?
A: Jeffrey Terry Green - The Trade Desk, Inc. - Co-Founder, Chairman, President & CEO: Thanks. So it's early days in the specifics of our partnership, but we're very excited about the long-standing relationship that we've had with Roku and seeing it finally materialize into something meaningful. And I do believe this is something meaningful. The Roku Channel has grown tremendously over the last couple of years. So as they become more and more into content, and that includes having more ads, we're excited to have access to those in large part because we view Roku as a key premium publisher in the connected television space.
Q: Can you just talk more about the expanded OpenPath partnership with Disney's streaming properties? Curious how this impacts just the amount of CTV inventory that you're now able to access compared to what you had before?
A: Jeffrey Terry Green - The Trade Desk, Inc. - Co-Founder, Chairman, President & CEO: You bet. So let me just take a step back to explain what OpenPath is. Over the years, the supply path in digital advertising has gotten more and more convoluted. And sometimes it's because of the tactics used in companies like Google, where the DoubleClick Ad Exchange was once a pure theme and then they introduced things like Open Bidding and Open Bidding is really the backdrop whereby they created a lot of funky options that are described in the Texas Attorney General's complaint.
Q: I want to ask a question about social video. It seems that it's been gaining share and as linear dollars are just kind of leaving linear, like it's definitely competing with CTV for a share of those dollars. Just any thoughts about how you think about that, how you can kind of utilize that channel for your customers? And then it also seems to be perhaps pushing CTV to embrace more data to try to be competitive with that. And so maybe comment on that, agree, disagree, et cetera.
A: Jeffrey Terry Green - The Trade Desk, Inc. - Co-Founder, Chairman, President & CEO: You bet. So in the move from offline advertising, which, of course, pre-Internet was everything. And in the world of digital, everything has been shifting towards digitization and eventually we think all advertising will be transacted digitally even for the small minority of that, that has not actually executed digitally. So we'll use digital pipes even if we're going to run an ad in print, for instance. So everything is moving to digital.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
