Trade Desk Inc Q3 2016 Earnings Call Transcript

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

Question: Mark Kelley - Citigroup - Analyst : Hi, guys. Thanks a lot for taking the question. You highlighted mobile growth in the quarter, some competitors have talked about mobile video viewability not having third-party measurement in place and advertisers kind of holding back there. That doesn't seem to be impacting you. Would love to get your thoughts there. Second, international growth exceeding the growth domestically, you know, what are the main geographies today and can you expand on the plans in Hong Kong? Thanks.

Question: Mark Kelley - Citigroup - Analyst : Yes. Just expand a little bit. You noted the opening in office this quarter, just a little bit more on the plans there would be helpful. Thank you.

Question: Mark Kelley - Citigroup - Analyst : That's great.

Question: Mark Mahaney - RBC Capital Markets - Analyst : Okay. Great. Thank you. Sorry about the background noise. Jeff, Rob and Paul, congratulations on the first quarter out. Jeff, you're updated thoughts across the industry on header bidding. What trends your seeing there, and impact (inaudible) specifically on The Trade Desk. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 10, 2016 / 10:00PM, TTD.OQ - Q3 2016 Trade Desk Inc Earnings Call

Question: Mark Mahaney - RBC Capital Markets - Analyst : Thank you, Jeff.

Question: Brian Fitzgerald - Jefferies - Analyst : Thanks, guys. A couple questions. In general how do you feel the market is evolving around digital TV and audio? I guess the point is programmatic adoption accelerating in those channels? Is the spend accelerating? And then, as you look at international dynamics, do you expect it to be any different there for any systematic reason? And then one more I wanted to ask around the product releases. 12 product releases. How should we REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 10, 2016 / 10:00PM, TTD.OQ - Q3 2016 Trade Desk Inc Earnings Call think about that going forward? Is that the usual rate or is there a quicker tempo as you address emerging video, audio and international opportunities? Thanks.

Question: Brian Fitzgerald - Jefferies - Analyst : No. I think you got them. I think you hit both of those, Rob. Appreciate it. Thanks, Jeff and Rob.

Question: Brian Fitzgerald - Jefferies - Analyst : Got it. Thanks, guys.

Question: Sean Patel - SIG - Analyst : Thanks, guys. Just a couple. The first one, Jeff, you highlighted how your growth is more than 4 X'ing the market and you talked about some of the newer growth drivers like audio, TV, and international are starting to see strong uptake. Is there any reason why this pace of growth shouldn't continue, especially given the low penetration and the near immediate term? And second question, in terms of audio, can you help us understand how big that is today in terms of the mix and where you see that going over the next two, three years? Thanks.

Question: Youssef Squali - Cantor Fitzgerald - Analyst : Thank you very much, guys. Congratulations on a successful IPO and successful quarter out of the gate. Let me actually take the last question and maybe flip it on its head. Jeff, as just trying to figure out, what are the gaining factors to use? The growth, X, the tough comp. So clearly, nobody can keep growing at 100% year in and year out. But if you strip those out, and you look at other potential, you know, head winds to your top-line growth, can you just help us understand what those would be? And then maybe quick question for Paul. And this is more of a long-term kind of three to five-year type of question, not a two-three quarters out, as you work towards the 40% plus goal for EBITDA margin that I think you guys talked about during the IPO, can you just talk to us about where you see the most margin leverage sooner rather than later, as the model kind of evolves? Thanks.