The Trade Desk, Inc. (NASDAQ:TTD) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET


The Trade Desk, Inc. (NASDAQ:TTD) Q3 2019 Earnings Conference Call - Final Transcript


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Q & A

Thank you. We will now be conducting a question-and-answer session.[Operator Instructions]. The first question comes from Michael Levine with Pivotal Research Group. Please go ahead .

Michael Levine

Two questions, guys. First, I'd love to understand how we should be thinking about the linearity of 2020 with regards to Connected TV and both what give you as much confidence as you do in terms of, in terms of that very strong outlook, as well as trying to better understand the move by Roku in terms of acquiring DataZoo, and how you think they end up being positioned is as the media companies to get a little bit more sophisticated about what their inventory it looks like online?

Jeffrey Terry Green

Awesome. Thanks, I appreciate the question. So, first to talk about Connected TV, this year has been something of a dream as it relates to the way that we've set up 2020. If you go back in time and asked me to write down on a sheet of paper what are the best partnerships that we could form this year, I don't know that I could have dreamed up a better year than what has happened between the partnerships with Amazon and with Comcast and what we're doing with Disney, and even what we're doing with Roku. I'll come back to the second part of your question in just a second, but it's just been an unbelievable year. Q3, of course we just highlighted that our Connected TV spend increased by 150% year-over-year. We talked about how Amazon inventory went up 21x throughout the quarter.

We have used that 21x before in in our Connected TV numbers, and to be there again with a partnership that as new as it is with Amazon, but to go up that much is -- it's pretty exciting. Equally exciting is Freewheel launching a product that is the equivalent of header bidding so that programmatic demand can compete with sort of the ordinary sales force in TV. Seeing that go up by 300% is also amazing, and it's been amazing to see our partnership with them expand.

To sum it all up, I heard a number a number on CNBC recently, which was 20% of television content has moved to streaming, but only 3% of ads have. And if you look at that is sort of the macro direction that we're all heading in, and if you believe that ultimately all the content is going to be streaming, because it's better to be on demand, then we're 3% done and this year just heats things up. And if that wasn't enough of a dream year, you also have Disney going all-in on what I think is a pretty amazing strategy, where they've recently put together the pieces from Pixar, Marvel, Fox, Lucas Films -- put all of this amazing content together and it's no wonder that my 14-year-old when I was dropping them off on to school today, we passed an ad for Disney Plus. And it wasn't my 8-year-old