The Trade Desk, Inc. (NASDAQ:TTD) Q2 2019 Earnings Conference Call - Final Transcript
Aug 08, 2019 • 05:00 pm ET
Greetings, and welcome to the Trade Desk Second Quarter 2019 Earnings Conference Call. [Operator Instructions]
I would now like to turn the conference over to your host, Mr. Chris Toth. Thank you, Mr. Toth. You may begin.
Thank you, operator. Hello, and welcome to The Trade Desk second quarter 2019 earnings conference call.
Our call today is taking place from our Ventura headquarters. One the line is our Founder and CEO, Jeff Green; and Chief Financial Officer, Paul Ross. A copy of our earnings press release can be found on our website at thetradedesk.com in the Investor Relations section.
Before we begin, I would like to remind you that except for historical information, the matters that we will be describing will be forward-looking statements, which are dependent upon certain risks and uncertainties. I encourage you to refer to the risk factors referenced in our press release and included in our most recent SEC filings.
In addition to the GAAP financial results, we present supplemental non-GAAP financial data. A reconciliation of the GAAP to non-GAAP measures can be found in our earnings press release. We believe that providing non-GAAP measures, combined with our GAAP results, provides a more meaningful representation of the company's operational performance.
I will now turn the call over to Founder and CEO, Jeff Green. Jeff?
Jeff T. Green
Thanks, Chris, and thank you all for joining us.
I'm excited to announce that our revenue growth accelerated to 42% in Q2, compared with 41% last quarter. Our accelerating growth is a testament to the increasing trust that major global advertisers are placing in us, as they shift more of their advertising dollars to programmatic. To understand the significance of our growth, we need to provide context for what is happening to advertising from a macro perspective.
In 2019, according to IDC, global advertising spend will be about $725 billion, up over 4% from 2018. At current growth rates, global advertising will be a trillion dollar industry in about seven years, one of the only handful of industries with a TAM over that mark. Programmatic is still a relatively small part of total global advertising. It is estimated at around $34 billion in 2019. But it is growing five times faster than total advertising at around 20% year-over-year according to Magna Global.
We maintain our prediction that before long, most advertising will be digital and nearly all of it will be transacted programmatically. This puts us in the fastest-growing segment of an expanding industry where we expect to continue to aggressively take share. We saw this in our results last year.
We are continuing to outperform the industry again this year, which is reflected in our biggest Q2 to date. But more significant than comparing our company's performance now to our performance in the past, our growth rate is 10 times the pace of overall advertising growth and in fact, our growth is nearly four times the growth rate of digital.
There are many reasons for our industry-leading growth rates. Some of our