The Trade Desk, Inc. (NASDAQ:TTD) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 05:00 pm ET
Greetings and welcome to Trade Desk Third Quarter 2019 Earnings Conference Call. [Operator Instructions]. It is now my pleasure to introduce your host Mr Chris Toth , Head of Investor Relations. Thank you, Chris, you may begin.
Thank you, Operator. Hello and welcome to The Trade Desk Third Quarter 2019 Earnings Conference Call. Our call today is taking place from our Ventura headquarters. On the line today 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?
Jeffrey Terry Green
Thanks, Chris, and thank you all for joining us. I'm going to quickly cover the highlights of the third quarter, but then I want to dig a little deeper into a couple of key areas that are rapidly coming into view in our industry. They will provide context for our performance this quarter, but just as importantly for our confidence in the fourth quarter and moving forward into next year.
Once again, in Q3 we executed well and exceeded our expectations. We saw revenue grow 38% year-over-year. Revenue was $164.2 million, surpassing our guide of $163 million. Just so you have a frame of reference for that growth, remember that Magna Global estimates the programmatic advertising market is growing at around 20% this year, and the overall advertising industry is growing at 4%, according to IDC. So in the fastest-growing segment of an industry that is expected to reach a TAM of 1 trillion dollars in the next decade, we are significantly outperforming. In fact, we are once again growing at about double the pace of the industry. Our outpaced growth and market share gain of the result of investments we've made in key channels and markets. It's also because of our commitment to objectivity and independence. And it's the work we do across the industry with partners and standards bodies to make this an industry that advertisers and content providers trust.
As you know, one of those major investment areas a CTV. Spend on our platform in Connected TV was up 145% from Q3 of last year. We've seen strong growth in available CTV inventory, especially in live events. We are especially excited about the upside potential for live events in