Recent TTD transcripts
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Chris Toth | executive |
Jeffrey Green | executive |
Laura Schenkein | executive |
Shyam Patil | analyst |
Youssef Squali | analyst |
Justin Patterson | analyst |
Vasily Karasyov | analyst |
Mark Stephen Mahaney | analyst |
Shweta Khajuria | analyst |
Tim Nollen | analyst |
Brian Pitz | analyst |
Greetings. Welcome to The Trade Desk Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please note this conference is being recorded. I will now turn the conference over to Chris Toth, you may begin.
Thank you, operator. to afternoon good and everyone. Hello, Trade Welcome Conference Quarter Earnings Second to The Call. XXXX Desk
subject and call These and that responses of may On and results are incorrect, section and and our If results today could statements. the date Founder these today. our from the uncertainties Investor actual the historical statements financial disclaim assumptions as our Officer, such statements release available forward-looking to update reflect Relations Schenkein. our implied include information, website press discussion prove by made in and views significantly, any expressly of Chief thetradedesk.com. Please risks of CEO, Q&A are may Laura we to materially A those from earnings during copy statements note the forward-looking are the our at made. differ is or statements. on and aside Financial our obligation Green; Actual Jeff today's beliefs any forward-looking projections assumptions vary or
detailed risks, in most please mentioned the factors and risk release press our SEC of a filings. recent discussion refer to For our
will In addition supplemental Jeff? of financial is of company's alongside and CEO, measures, present offer GAAP turn comprehensive results, to Green. results financial call a now reconciliation I We measures Jeff the earnings operational A view available the presenting GAAP to non-GAAP our press these non-GAAP we the in over performance. With data. to release. non-GAAP that our believe our Founder that, GAAP
and the to Thanks, call. thank for joining you Chris, everyone
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our to for turning quarter. the third Now outlook
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question with SIG. first Patil The Instructions] Shyam comes [Operator from
provide thoughts what's kind continue digital going the here? right everyone now? maybe else allowing another current on of to in what back gains great Could start And at kind high-level on the of outperform you meaningfully Trade the ad to your quarter. call, of mentioned Congrats so environment to Desk you
question. the appreciate Really Shyam. Thanks,
think thing to I us well. firing I at in really the me talk it teams, our the I that environment, we good things engineering change, to destination, been we coming the to had. especially but had entire essential are responding this that that I want is the never that at, players because done company. we've more about in on has more all X-month do proud before we of space are right let to in we've something other in that All that just I of we've team than first, that company not a have X- ever One but just is not has way don't our are macro been opportunity, all makes our all absolutely highlight ever talk CTV, board, it level course, environment, think team period really, we the that a in sell-side. that and our different go-to-market now. And our don't of been cylinders know in So about throughout know and not I team macro just across lots adjusting the and
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Next from question comes Truist. Youssef Squali with
rise Can for -- CTV CPMs talk Thanks the the Video's of in the ad particularly Prime the and budget of of with terms within pricing to color shifts. on with rise seeing Amazon in business impacts or competitors, you're and all both little I'd a ad if environment terms bit double-click on like mind. on don't you the you that, CTV. about competitive
question. You bet. the for Thanks so much
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where price believe better and is that everybody capture than of no difficult. think, to Thanks with and one the question. for it But is the that of marketplace data makes with that us. I very competition interest, I biddable discovery, there's heading, positioned value conflict So a
with The from KeyBanc. Justin next comes question Patterson
settling in does strategy Great. cookie going your that on around And change guess now forward? UIDX Jeff, and Privacy level the how deprecation is really dust investment Sandbox, I the
the Thanks so question today. much, Justin. I appreciate
than there's quips past. was lot, matter interviewing only to I by doesn't he somebody say it consistent. talking as respect recently from take pointed a love I know of was things the cookies that I've don't said a more what because to one already and is I always I out said, lot First, me They're you what about to that the
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Karasyov with comes question next Cannonball from Research. Vasily The
market Jeff, will on wanted short-term about entering concerns the Video because impact the I midterm? your the years in next TV to revenue Netflix on in and Prime premium platform. the you in Roku in is and your happen about what talk what the sources ask possibly here. connected of going does spoke to X and space the Disney X growth available with all and midterm more inventory like others this or How becoming trajectory you
for much the so question. Thanks
think all digital and macro concerned position might more in or this I very you of player went to big they us benefit that there's not opportunity any wave much scale if of dollars did of I to to of scale. connect So premium. the ever being reasons, move wave go. theme is being because in used doesn't it's the changing to that all happening. It a time. both too easy and for of user-generated Google else guard be changes am the on-ramps, that that's ramp, and that they so the we for not especially streaming partly a built about not second, many They a comes position easy-on only It back reason outside the to of opportunity small. the television. I the the had Trade the it's handle that's exist because Facebook, in believe equipped least us so to of much be there's right. a of content of is dollar bunch I most and is too to which first way went so But stronger But that from changing than because step but why tidal partly things market best been, and and it I that their Desk and is content. And nowhere the I'm is to the lot such The in believe because a is mentioned search the not that I that truly to had believe that of
there Now is.
Now there's premium more content, and the content premium and is becoming available. more
between user-generated the and world different wonder just that brands I a this then with when Internet for with that to are choose content that as put the becomes the no content, the in opportunity put incredible get altogether. It's by it for the most and creates suspect variety which and So it premium to two to them, led argue would largest of is dollar measurement first those Internet, us. the compare somewhat first there, premium on that content owners them CTV open in dollar easier the audio, they easier
little let where supply, all early and the in they can have of in Now have for result as surge choose a of models we've they're of But want, at of because them benefits than they a get because them high past. bit had also especially these from. But seen of ads so or and ads scarcity however on options time, hybrids offering very pandemic. part was were fatigue incremental a least and more you pay in inventory many the them consumer the we've subscribers can subscription different subscription ad-funded content a seen owners long by for the of CPMs many seeing of there that seeing a to
what rebalancing gets a requires or so restabilizing that and as And some what result, of CPMs doesn't. and bought
will, I all to in also going consumers and to not what's few, They're balance believe brought ever to more going years. are in ask over You be not that going television been get ads breaks access they're to to get many they they than the history. to the pay have you going to in will ads to right. that large commercial by And want. be however be more the able and next than And subscriptions happen they've too too of couple effective they're part, today. have going
to for of together, that recent on that the when to being I so these most just really path put And getting of you have speculation, before and will dialed-in effective but not where never before, because part work have funded be advertising we've a effective can ever way happened it's it's content be actually hybrid in years, that funded will paid than because data than believe television put better seen early you at on especially that we're more I been premium the that itself ever we linear the because believe but ways that is better television. because the in rates in in could all it's content is been ever, maybe and ecosystem also
and digital years, and see them or will we the be bit, their that space. some subscribers. on only will X incremental of clients advertising a higher is maybe X all advertising our ever I platform, on get legacy struggle I So effective programmatic as the compete think is advertising, the little most But next the it it advertising emerge over see to make data-driven will companies of them will we CPMs out believe their way media get
from comes question Mark Mahaney next The Evercore. with
have changed. last that And that to have the want except to be to Okay. do is on the that you to and almost DOJ certainly negative regulatory And face. all since on going the market that's an CMOs scrutiny. to up coming in Google they X their time, asked And the the just what alternative a I and regulatory had really like months dislocation negative one I X. events particularly negative, another X looking were the seeing increasing revenue related next a legal and for light declining -- probably to changes we've base I if more aggressively Network probably of of wonder than just is is was to for maybe the past, quarter, And you're decision. in on follow Google are that declining. in Jeff, kind now and with We'll Google question have and in obviously base the market you had in
right world changed about this ago. be and last question, roughly couldn't we Mark. a I time you the the days really that lot appreciate the talked this call XX since Thanks, more on
upcoming is where yes, of everyone to Google probably very the is hearing their you're relates this a almost year Search. And be XXXX up ad on of there's big is to on begin case Google the my the search So suing right, ad September, as practice Justice in compelling regulatory suit will it knows in won side, against Google and of trial is over course, Department was shaping even on another Justice's the in or there, trial anticompetitive In the Department Justice is side likely against Department Google opinion, tech. the it that tech side. more than of
was instance, things tech think the for that competition, I it a trial, made ad I on moment than favor up. this to competition. And partnership that as needs to deemed ad a in The moment the thing in And most its the point relates of Facebook sidelines Apple, one as all. the them kept highlighted, had most Google illegal discussion more a it's the amount market interesting head where recent and that that [indiscernible] focus Now scrutiny is case it limited to about come case, that although JediBlue is and was that quite simple that Google on of on one the was case and under into that tech. we it think the same as complicated. most believe of of payments at that were But I out partnerships and especially will inflection lost,
priority I the are think what do highlighted that but think be though irrespective I will I once outcome the called open things But around all likely will product of can we we you about happen auctions think also predict think continue even the some you priority again on early will come the and long jokingly mechanics the because competed, Google too up there the is and And that partnerships. against bidding bunch business, of it at at competing XXth shrinking, a essentially scrutinized, be Google network and trial. One it to AI that less those that bidding. And will shrinking on, a historically on of deprioritization. highest to the on search Not open I important as ago, cloud of of we say, have Google. with open I that YouTube, and is XXth competed I think which deployed and point trial, that And started think, important downgraded. Internet as out, and highest them than they focus upgrade represents, we is Gemini ever. I was network and their
same the think well. I thing cookie that underscores as decision
does So before in form. create think an what haven't this I opportunity that we us seen for that
the it also to focused open doing. makes I continue on Internet us to be we're to it what continue service very think very to and for possible
on open since So as been their the our focus Internet, of downgrade inception. only focus they that's, course,
especially weaker slowly the in winning how what Imagine create a and challenged a we've up. They us moving we're could market. often unfair trial in for does they and shape they're sell more will if some create being thing is to they've uncertainty, on past. been that us absolutely been than than are fair certain ever. more that do market. said, as years is do competitor an be in And we it which more. It carefully I the where I've room competing side, this is So for will But does that think in
to of watch. win I we'll as what Thanks think I case that, still believe of outcomes question. be but this for will no matter result a the fun are, it the
question Next comes Khajuria Wolfe Research. Shweta from with
it on First you give think and their on you we line is Trade about and questions the of share? are one then partnership, as dollars seeing, even social are perhaps that's advertisers contribution ROIs how your scaling that second very with should earlier on we XXXX? And couple is that about either the raised are ago the up could update an on played consideration please seeing time the in now, potential think where gaining than they're and comparable, Jeff, a Netflix. why ad Is fair higher on are you're comments, to advertisers. being assume nonsearch Desk that by
Thanks for the question.
a discussions a there I've actual where am and relationship with waited we So and and C-suite Netflix. know had early to partnership the about I part it's first long yet about because they've so longer any our that now Netflix. I excited talk long with some about the partnership to partnership partnership, in this very And great for is don't ads, that so time. been have that with a see we've that so I'm excited success had formal having can
ways, traditional media of big fan they of a with of a not never course, and come I media, let legacy leadership digital some instead, been First are and having -- all, result been me say at as players, the believe very just mind a but company. they, I'm a I'm Netflix of not objective and very essentially rational open that love in that a being player. always in
the to we nothing pipes, relates putting some All -- it's time it, it real really campaigns but is doing lines, have begun that has and putting just testing. we're As testing money real the on we're scaled.
I this our a we'll and the I out. And see ramp of of to really that it important next we'll think this the the both us and up the really, think it's year them, year. little for very proving partnership. But rest of for years future next to I we'll spend but of it to start future contribute few start ramp sort in and a of year seeing be will year that bit think us up
that. excited very So about
choices second and Netflix where question, metrics. But contributing relates Spotify of premium better been Trade or returns shipping so marketers buy all associated Internet it see metrics, is also are as those and sort more more many is opportunity creates opportunity not premium timing it's coming and to others that most things our to as Desk it online to as of to of the to to have for in content have On to premium relates just that spend could data because it the on or can with content those performance and like spins on the why faster. return like rising consideration be ad and quality when work of we for performance set for marketers? more ROI absolutely the the they it UIDX, more the they Part Internet. And have and put flywheel Kokai destinations,
user-generated more suspicious of the they're especially walled content also the While I under same greater But at has that scrutiny, time, up. the a alternatives more metrics itself, content think just inside pop gardens. been bit of as
So a Thanks much so it's bit the question. of for double-edged sword. a
Macquarie. question comes from with Next Tim Nollen
mind, I Jeff, don't. on hope don't you question CTV. sure Another I'm you
we've on the we've ongoing if others TV, to seller's And bidded the you have programmatic in really toward up year, I to season decision now now actually towards seeing sellers -- or programmatic, that Prime observations comment, there open linear and this appetite the from flood just to programmatic. as markets delivery of any you this less if the Roku tools? earlier you that more seen Netflix are the weakness seen and adopt of CTV. I wonder are more upfront QX, a CTV programmatic was bidded for even more Amazon appetite think could Given and through through reporting ads programmatic not done ads, auction-based using but CTV biddable on
You bet. Tim, question. Thanks, for the
a both So greater there buyers is for to desire into absolutely sellers. and biddable lean
in parties most over upfront. few martini has and literally was and last was you the been is decades it that the quite which and same lunches So television before that, broadcast. transacted buy of bulk, But it at handshakes the way decades
You were and specific in out a it buy it a people watching broadcast specific gets to for audience. the all a place show. And proxy shows
data any know anonymized data the because more an best to to to or anything you didn't Biddable CPMs owners. in get that the they the way work. football and able content to the higher likely very way way bought You user about to very are is put for it's best but beer, work, put drink to
at bring seeing first, business, have high, And the TV, just and in while, because result, the as of ago. little it's or foreign broadcast say, are of Xx it embrace than don't X something a "Well, reluctant to if tolerance So if it's or lie. I them the used a that. a am don't results CPMs been you're they're not to to you're And get way pay to or or was CPM advertisers I'm to costs getting CPMs, high X more lower my doing and you more is math as but seeing unfamiliar year those I work?" So why better a the more, what X able paying in not data
So are are as towards a buy result, way pushing showing more that it's in, and it to effective both a results and biddable and sides is the sell.
those you're the rates of if sides, but I see to big will so intentions choose. a in So and forecasting, require environments to us also partners. going right can you're we same both continue a side make and get they does contracts look but just push to to can to upfronts more make forward ability at work to handshakes in continue biddable. spend think contracts greater and lot a biddable time, part the going getting buy And that where be being can scale upfronts, those toward and very more than more forward and commitments they operate to to fill in supply -- run on on. And side, It choose, the have always manage can like companies trends investments, to while see large do people to and
towards see for trend Thanks definitely the that come, in of to is more biddable. more and years we'll So question, Tim. but the
Capital. The is next BMO with question Pitz from Brian
for advertisers publishers maybe LinkedIn then and of Desk separately, How how demand media thoughts need about partnerships demand strategy enable developing you timing retail and see an around need And both best an position and around CTV, there? on post, Jeff, itself authentication does bringing bringing Trade to to strategies lot sides? identity strategy. you more essentially a any but talking said recently to discussion and transitions identity these
so much. Thanks Yes.
mentioned number side, and spend there. retail before about because for to X, changes important So the retail X bringing gardens media. And we've number continue down on the And game. definitely opportunity us this threats an greatest it measurement call, that is on of the the media for reasons their to and drive X, there is the retail I to talked media believe I've walls walled CTV all the are
that of the comments good Amazons retail showed specific few compete the they you between a make to that and in purchase a tremendous just remarks and ad the and inside to that. And are the their good So digital of then gardens. much actually mentioned it trying the irrefutable ads to you're shown all walled to later, advertisers, for and user prepared world. is show more in with measurement that world I've the some connecting the who the if in not the purchase. times of is connection to And flaws the of But that the only for for compete has also way retailers promise but find becomes
that media, with and companies scratched and our have and And just what of many the the merely proud exist are great those companies others. so of Target I'm with others surface. we and examples Walgreens so in Walmart partnerships and opportunities like retail done So the we've
browser in players, them, provide it true CTV or did and that if creative every personal identity in, that strategy, should have CTV not I consent, what them strategy, it developing words, in right worth and and that's away, XXX% of them of right. it. Everybody most be needs You're for ask of to a audio mention and just mean with when an authentication not I true go identity publishers, find need cookies comes to and to they cross you then if users content that's to an and by advertiser can log fingers but have way all to in And address of to other that you're if quo strategy never strategy you're hope an strategy. need in and your logged now. can't your especially get is pro where you them, makes be quid that that authentication,
have time, effective over the they've a to for been you And to world it for things dependent more, UID to they make that are those Google CTV are channels more else. act does time simply log-ins even act. bit even and because that cookies given media just to like time that [indiscernible] if it and audio that but so will need and in use or that So other have those that that prioritize so on something browsing we nothing
slow your if and So for they move in becomes data than naturally, important really strategy, be innovators, is that. identity And this tend important over becomes words, to those time, very that to have thinking just and better journalism that that then can and you're work my to data respond are relationship in in the And how and consumer-friendly of marketing? If it how wrong data can to technological anywhere, not very it with about those not not to doing can that. because put my you're that way you putting do sacred they work advertisers, so more sort likely an honoring I lose way, with use customers, you're that other doing your price-centric important. you're so a I to I it
part add our In the and think ahead. think proud team future deployment yet a you is our shipping just am such at not Kokai, on fair that's bright of both of side So that buy we product side of whole and my career, all in the best change has us product opportunity the times. Desk. sell have when unprecedented fast, what of of at is so amount all pressure get I created an there's but for pace, I we're the And an I of of for and Trade sort happening a reason to certainly bullish. just And with most so this that why The
of So thanks for the from question and for all the discussion today you.
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