INVESTOR RELATIONS PRESENTATION 2026 Statement of caution under the Private Securities Litigation Reform Act of 1995 O B J E C T I V E We operate only on the buy-side and are not biased toward specific inventory or partners. Our interests are aligned with our clients. This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to expectations concerning matters that (a) are not historical facts, (b) predict or foreca ...

Core Insights - The Trade Desk enters 2026 with a strong business foundation but faces increased scrutiny regarding future performance and competitive pressures [2][14] - The company has experienced a shift in competitive dynamics, particularly due to Amazon's growing influence in the digital advertising space [8][11] Company Performance - The Trade Desk has maintained a strong track record with over 30 consecutive quarters of revenue beats and customer retention above 95% [4][5] - However, the company reported its first revenue miss in years by the end of 2024, which altered investor sentiment despite a rebound in growth [5][6] Competitive Landscape - Amazon Ads surpassed $50 billion in annual revenue, reshaping the competitive landscape, especially with partnerships with Netflix, Disney, and Roku [8][9][10] - Google and Meta have also strengthened their ecosystems, leveraging AI-driven personalization and first-party data, which poses challenges for independent platforms like The Trade Desk [11] Strategic Positioning - The Trade Desk's commitment to the open internet remains its key advantage, focusing on neutrality and cross-platform reach [12] - However, the fragility of the open internet was highlighted in 2025, as more consumption shifts to streaming platforms, potentially limiting The Trade Desk's supply access [13] Future Outlook - The company heads into 2026 with a robust product roadmap and loyal customer base, but must navigate a more competitive environment and maintain execution excellence [14][16] - Investors are advised to approach 2026 with heightened expectations and a clearer understanding of the evolving landscape [16]

Core Insights - Trade Desk (TTD) has a strong balance sheet with a cash position of $1.7 billion and reported free cash flow of $117 million on revenues of $694 million, reflecting a 19% year-over-year increase [1][10] - The company focuses on AI-driven platforms and data transparency tools, with significant investments in UID2 and Audience Unlimited, enhancing its competitive edge [2] - TTD's disciplined capital allocation is evident as it repurchased $261 million worth of stock in the second quarter, while projecting revenues of at least $717 million for the third quarter, indicating a 14% year-over-year growth [3][4] Financial Performance - TTD's adjusted EBITDA margin stands at nearly 39%, showcasing operational efficiency [1] - The company expects adjusted EBITDA to be around $277 million for the third quarter, contributing to steady cash flows [3] - TTD's liquidity allows for opportunistic share buybacks and investments in AI infrastructure and global expansion [4][5] Competitive Landscape - TTD faces competition from Amazon, which is increasing investments in its DSP and CTV businesses, leveraging extensive proprietary data for optimization [6][7] - Amazon's cash and cash equivalents were reported at $57.7 billion, providing it with significant resources to scale its advertising business [7] - Magnite, another competitor, reported an operating cash flow of $33.9 million and a cash balance of $426 million, indicating a different financial position compared to TTD [8]

Core Insights - The Trade Desk (TTD) stock has declined 54.5% year to date, significantly underperforming the Zacks Internet Services industry's growth of 30.4% and the S&P 500's gain of 15% [1][8] - The stock is trading at a significant discount to its 52-week high of $141.53, closing at $53.49, which is closer to its 52-week low of $42.96 [4] - The decline is attributed to a cautious ad spending environment and macroeconomic uncertainties affecting advertising budgets [5][8] Price Performance - TTD's stock performance has lagged behind peers such as Amazon (AMZN), Magnite (MGNI), and PubMatic (PUBM), with AMZN and MGNI gaining 1.1% and 20% respectively, while PUBM is down 43.7% [1] - The stock's current valuation is considered stretched, with a forward 12-month price/sales ratio of 8.04X compared to the industry's 6.46X [12] Competitive Landscape - The competitive environment is intensifying, with major players like Google and Amazon dominating the space, leveraging their control over inventory and first-party user data [6] - Smaller competitors like Magnite and PubMatic are also expanding their presence in Connected TV (CTV) and retail media, increasing competition for ad dollars [6] Growth Drivers - Despite challenges, TTD has several growth drivers, including CTV, retail media, international expansion, and its Kokai AI platform [13][21] - CTV is highlighted as a fast-growing segment, with programmatic CTV delivering high returns on ad spend, supported by partnerships with major companies like Disney and Netflix [14][17] - The Kokai platform is gaining traction, with over 70% of clients using it, expected to enhance campaign precision and efficiency [18] Financial Outlook - For the third quarter of 2025, TTD anticipates revenues of at least $717 million, indicating a 14% year-over-year growth [20] - Total operating costs surged 17.8% year over year to $577.3 million, raising concerns about profitability if revenue growth does not keep pace [9] Strategic Initiatives - TTD is focusing on securing long-term partnerships with major advertisers and agencies, with nearly 100 joint business plans in the pipeline [15] - The company is also innovating with its UID2 initiative, an open-source alternative to third-party cookies, and the Audience Unlimited feature to enhance data accessibility for advertisers [19]

Core Insights - The Trade Desk (TTD) is experiencing growth due to increased adoption of Connected TV (CTV), which is central to its growth strategy [1][10] - Video advertising, including CTV, accounted for a high-40s percentage of TTD's total business in the last reported quarter [2][10] - TTD's new Ventura Operating System aims to enhance efficiency and transparency in CTV advertising [3][10] Company Performance - TTD is capitalizing on the shift from linear to programmatic CTV, with CTV being referred to as the "kingpin of the open internet" [2] - The current ad landscape shows supply outpacing demand, creating a buyer's market, particularly in CTV [2] - TTD's shares have declined by 40.6% year to date, compared to a 9.3% decline in the Internet – Services industry [11] Competitive Landscape - Competitors like PubMatic and Magnite are also benefiting from the growth in CTV, with PubMatic's CTV revenues increasing over 50% year over year [5][6] - Magnite reported a 15% increase in CTV's contribution, representing 43% of its total contribution ex-TAC [7][10] - The competitive environment is intensifying, with major players investing heavily in CTV capabilities [5][7] Economic Context - Increasing macroeconomic uncertainty and trade tensions may negatively impact TTD and its competitors by squeezing advertising budgets [4][10] - TTD has noted the potential impact of macroeconomic conditions on large global brands, which could affect revenue growth if conditions worsen [4][10] Valuation Metrics - TTD's shares are currently trading at a forward price/earnings ratio of 35.58X, significantly higher than the Internet Services industry's ratio of 17.8X [13] - The Zacks Consensus Estimate for TTD's earnings for 2025 has remained unchanged over the past 30 days [14]

Core Insights - The Trade Desk, Inc. (TTD) utilized $386 million in cash for share buybacks in Q1 2025, supported by a strong balance sheet and consistent cash flow [1][10] - TTD's balance sheet showed approximately $1.7 billion in cash and equivalents with no debt, and a total repurchase authorization of $1 billion [2][10] - The company is optimistic about future growth opportunities in connected TV, retail media, and international expansion, emphasizing a balanced cost structure [3] Financial Performance - Operating cash flow for Q1 2025 was $291 million, while free cash flow was $230 million, indicating that buybacks exceeded cash generation for the quarter [1][10] - TTD anticipates Q2 2025 revenues of at least $682 million, reflecting a 17% year-over-year growth, assuming stable macroeconomic conditions [5][10] - Adjusted EBITDA for Q2 is expected to be around $259 million [5] Strategic Initiatives - TTD continues to innovate in advertising with new partnerships and product launches, including an expanded partnership with HOY and the introduction of Deal Desk within its Kokai platform [4] - The company plans to continue opportunistic buybacks to offset dilution from employee stock grants [6] Market Position - TTD's shares have decreased by 29.5% over the past year, contrasting with the Zacks Internet -Services industry's growth of 0.6% [9] - The company trades at a forward price-to-sales ratio of 10.88X, which is higher than the industry average of 5.18X [11]

Core Viewpoint - The Trade Desk, Inc. (TTD) is expected to report a decline in earnings and revenues for Q1 2025, with challenges arising from competitive pressures and macroeconomic uncertainties [1][5][17]. Financial Performance - The Zacks Consensus Estimate for TTD's earnings in Q1 2025 is 25 cents, down from 26 cents in the same quarter last year, with a revenue estimate of $574.3 million, indicating a 16.9% year-over-year decline [1]. - TTD anticipates revenues of at least $575 million, reflecting a 17% year-over-year growth, despite challenges from the previous leap year and reduced political ad spending [2]. Earnings Surprise History - TTD has consistently beaten the Zacks Consensus Estimate for earnings in the past four quarters, with an average earnings surprise of 7.68% [2]. Market Position and Competition - The digital advertising industry remains highly competitive, with major players like Alphabet and Amazon exerting pressure on TTD's market position [5][17]. - TTD's stock has declined by 58.1% over the past six months, underperforming both the Internet Services industry and the S&P 500 composite [10]. Strategic Initiatives - TTD is focusing on international expansion, reorganization, and structural improvements to enhance internal effectiveness and scalability [9]. - The company is advancing its support for UID2, a privacy-centric identity solution, which is expected to improve digital advertising relevance and user control [8]. Valuation Metrics - TTD's stock is considered expensive, trading at a forward 12-month Price/Sales ratio of 9.08X, compared to the industry's 4.89X [14]. Investment Considerations - Given the negative Earnings ESP and Zacks Rank 5, it is suggested that investors consider offloading TTD stock from their portfolios [4][18].

Core Viewpoint - The Trade Desk (TTD) has experienced an 18.2% decline in shares over the past month due to market volatility and company-specific challenges, including weaker-than-expected financial results and slower adoption of its new platform, Kokai [1][4][5]. Group 1: Market Context - Broader market indices have been affected by escalating trade tensions, particularly between the United States and China, leading to concerns over supply chain disruptions and inflationary pressures [1]. - President Trump's announcement of a 90-day pause on reciprocal tariffs initially boosted market performance, but indices fell the following day, indicating ongoing volatility [1]. Group 2: Company Performance - TTD's fourth-quarter 2024 results were weaker than expected, contributing to investor caution [4]. - The stock has underperformed compared to the Zacks Computer & Technology sector and the Zacks Internet Services industry, which declined by 8.4% and 8.3%, respectively [4]. - TTD has also lagged behind digital advertising peers like Alphabet and Amazon, which saw declines of 8.4% and 8.9% in the same timeframe [5]. Group 3: Growth Opportunities - TTD is benefiting from increased digital spending in areas such as Connected TV (CTV) and retail media, reporting over $12 billion in spending on its platform in Q4 2024 [6]. - The company is advancing support for UID2, a privacy-centric identity solution aimed at enhancing digital advertising relevance while prioritizing user privacy [7]. - Major streaming platforms are investing in programmatic advertising and adopting UID2, which is expected to enhance targeting capabilities for advertisers [8]. Group 4: Strategic Developments - TTD introduced its Ventura Operating System for CTV, aimed at improving efficiency and transparency in advertising [10]. - The acquisition of Sincera, a digital advertising data company, is expected to enhance TTD's programmatic advertising platform by improving data quality and campaign optimization [11]. - The company is actively integrating AI across its operations to meet evolving client needs [12]. Group 5: Challenges - The rollout of Kokai is slower than anticipated, leading to operational difficulties and potential impacts on performance [13]. - Increasing macroeconomic uncertainty and trade tensions may squeeze advertising budgets, posing challenges for TTD [14]. - The competitive landscape of the digital advertising industry, dominated by giants like Google and Amazon, continues to pressure TTD's market position [14]. Group 6: Financial Outlook - TTD's valuation is considered high, with a forward 12-month Price/Sales ratio of 7.99X compared to the industry's 4.5X [15]. - The stock is trading below its 50 and 100-day moving averages, indicating bearish sentiment among investors [16]. - Analysts have revised earnings estimates downward, reflecting a cautious outlook for the company [15][14].