Trade Desk Inc Q2 2024 Earnings Call Summary

The following is excerpted from the question-and-answer section of the transcript.

Question: Shyam Patil - Susquehanna Financial Group LLLP - Analyst : Hey, guys. Congrats on another great quarter. Jeff, if you could you maybe provide your high-level thoughts on the current digital ad environment right now? And kind of going back to what you mentioned kind of at the start of the call, what's allowing Trade Desk to continue to so meaningfully outperform everyone else in gains here? Thank you.

Question: Shyam Patil - Susquehanna Financial Group LLLP - Analyst : Thanks, Jeff.

Question: Youssef Squali - Truist Securities - Analyst : Great. Thanks very much. Thanks for all the color on CTV. I'd like to double-click on that if you don't mind. Can you talk a little bit about the competitive environment within CTV with the rise -- particularly with the rise of Amazon Prime Video's ad business and the impacts you're seeing on competitors, both in terms of CPMs or pricing and in terms of ad budget shifts. Thank you.

Question: Justin Patterson - KeyBanc Capital Markets Inc. - Analyst : Great. Thank you very much. Good afternoon. And Jeff, I guess now that the dust is settling on cookie deprecation in the Privacy Sandbox, how does your strategy and investment level really change around UID2 going forward? Thank you.

Question: Vasily Karasyov - Cannonball Research - Analyst : Thank you. Good afternoon. Jeff, you spoke about what is going on in the connected TV market and short-term concerns because of Prime Video entering the space here. I wanted to ask you to talk about what will happen in the next two or three years in the midterm with all the premium inventory sources like Disney and Roku and Netflix and possibly others becoming more available on your platform. How does this impact your revenue growth trajectory in the midterm? Thank you.

Question: Vasily Karasyov - Cannonball Research - Analyst : Thank you.

Question: Mark Mahaney - Evercore ISI - Analyst : Okay. Hey, Jeff, I just want to follow up on the question I asked you last quarter, except events have changed. And that had to do with maybe the increasing dislocation in the market related to Google and all the regulatory scrutiny. And since that time, we've obviously had a DOJ decision. We'll probably have another one in the next three to six months and probably be negative 2. Google Network is now kind of negative on negative, like their revenue base is declining on a base that was declining. And I just wonder if that's what you're seeing in the market and CMOs are really coming to you and looking for -- more aggressively for an alternative than they were in the past, particularly in light of the regulatory and legal changes that Google is almost certainly going to have to face.

Question: Mark Mahaney - Evercore ISI - Analyst : Thanks, Jeff.

Question: Shweta Khajuria - Wolfe Research - Analyst : Thank you for taking my questions. I'll try two, please. First is on Netflix. Jeff, could you please give an update on where you are with their partnership, and how should we think about the time line on scaling and perhaps potential contribution as we think about 2025? And then the second one is on your earlier comments, a couple of questions ago on Trade Desk being raised up in consideration by advertisers. Is it fair to assume that the ROIs that they're seeing, the advertisers are seeing now, are very comparable, either even higher than non-search social ad dollars that are played and that's why you're gaining share? Thanks a ton.

Question: Shweta Khajuria - Wolfe Research - Analyst : Thanks, Jeff.

Question: Tim Nollen - Macquarie Research - Analyst : Thanks very much. Another question on CTV. I hope you don't mind, Jeff. I'm sure you don't. Given the ongoing weakness that we've seen in linear TV, even though this reporting season through Q2, there was a flood of CTV ads on Amazon Prime earlier this year, and now we've seen Netflix and Roku and others open up to more programmatic CTV. I wonder if you could comment, are you seeing more on the appetite for the CTV sellers to really adopt biddable programmatic, not just delivery of programmatic ads, but actually using auction-based bidded decision programmatic tools? And if you have any observations from the upfront markets that I think are more or less done now toward -- as to the seller's appetite towards bidded programmatic. Thanks.

Question: Tim Nollen - Macquarie Research - Analyst : Thanks, Jeff.

Question: Brian Pitz - BMO Capital Markets - Analyst : Thank you. Jeff, a lot of discussion around bringing demand to CTV, but any thoughts on timing around bringing more demand to retail media? And how you see partnerships developing there? And then maybe separately, talking about LinkedIn post, you recently said advertisers need an identity strategy and publishers need an identity and authentication strategy. How does Trade Desk best position itself to enable these strategies and transitions essentially for both sides? Thanks.