The Trade Desk, Inc. (NASDAQ:TTD) Q2 2019 Earnings Conference Call - Final Transcript

Aug 08, 2019 • 05:00 pm ET


The Trade Desk, Inc. (NASDAQ:TTD) Q2 2019 Earnings Conference Call - Final Transcript


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Jeff T. Green

growth is coming because we're executing well and capturing opportunities. But other growth drivers are secular. The digitization of advertising, particularly TV, is massive. The shift to data-driven decisioning versus guessing or intuition is game changing.

These changes in the landscape significantly benefit us.

We have created our strategy, our technology and our business model to take advantage of these shifts. As a result, more advertisers are standardizing on our platform. Every brand and every agency know that they need to be engaged in programmatic advertising, which is another way of saying that every brand has come to understand that advertising using data-driven decisions is much more powerful and effective than simply following intuition alone.

Our results are proof that this is occurring. For example, in the second quarter, we signed 55 new MSAs, representing some of the largest brands on the planet. This is the highest number of new MSAs we have signed in one quarter since the end of 2016. Through the first half of the year, 60% of the Fortune 500 companies are

now growing advertising through The Trade Desk.

More brands, nearly 50,000 of them, mostly through their agencies, are moving more of their ad budgets into data-driven advertising. These numbers are very telling because once advertisers embrace this model, they start to shift more of their budget into it. Once one person on an agency account or a brand starts to realize the value of data-driven precision, then others start to adopt it across more channels. We see evidence of this everywhere.

For example, in Q2, EMEA had continued solid growth and share gains. Our offices in both Madrid and Paris achieved record spend in Q2. We added more major advertisers and more accounts grew their spend with us. During the quarter, we added a large regional hotel chain and a smart home energy company, to name a few.

We are seeing similar trends in APAC, where our offices in Hong Kong, Jakarta, and Sydney all achieved record spend. We're also seeing exciting growth in many of Asia's fastest-growing emerging markets. eMarketer defines Southeast Asia as Singapore, Indonesia, Thailand, Malaysia, Vietnam, and the Philippines. They predict digital mobile growth there to be about 35% in 2019. In several countries, we are growing exponentially faster than that. For example, in Vietnam, we grew 125% year-over-year.

In these smaller, but fast-growing markets, data-driven advertising is the perfect fit. The cost of sales and distribution is way lower and market-moving shifts require adoption from fewer people. I continue to predict that these emerging markets will be nearly 100% data-driven before the US.

To continue demand in these emerging markets, you have to grow supply. That's why I'm excited about the premium inventory partnerships we have developed in Asia. For example, in Thailand, we access the country's top TV digital platforms, Channel 7 and Channel 3. We also access TrueID TV, the second-largest broadcaster in Thailand. In Vietnam, we partner with the largest free TV station, VTV.

Globally, our