Q2'21 results: Beat-Beat-Raise: 13% beat on revenue, 4% on EBITDA and 3% on guidance.
• Revenue grew +101% to $280M (vs. +37% Y/Y in Q1) vs. a guidance of +87%.
• Operating margin was 22% (+33pp Y/Y).
• Adjusted EBITDA margin was 42% (+32pp Y/Y).
• Cash flow from operations in H1 FY21 was $85M (vs. $149M in H1 FY20).
• Cash and short-term investments on the balance sheet was $0.7B.
• Customer retention over 95% for the past 7 years.
• Guidance for Q3 FY21 is +31% Y/Y, and an adjusted EBITDA margin of about 35%.
What I like most is the consistent beat and raise performance each quarter. TTD has beaten the expectations in all 20 quarters on both revenue and EPS. Exceptional execution. So if any investor's bear case is due to the 'lofty valuation' then they are into a big wake-up call.
Imagine that TTD keeps beating estimates by 7% each year (average of the last 20Qs) and raise guidance by another 5%...that 12% additional growth each year. So we can start with 2021 revenue at $1B, with the projected growth of 20% for the next 10 years, thats $6B in 2031, but with the additional 7% growth compounded over this period, it could be over $10B. TTD wouldn't be so expensive at just 5x EV/S and possibly 15xPE (for a SaaS-like business)
Highlights:
+The company officially launched its new trading platform Solimar.
+On CTV, the biggest driver of growth for TTD:
The big driver for the exceptional growth was CTV. Jeff Green, The Trade Desk's founder and CEO on the conference call:
"[...] Even as our overall business doubled over the second quarter last year, our CTV business significantly outpaced that growth"
[...] But now we're starting to see our CTV strategy scale more broadly around the world. For example, our CTV revenue in Europe was up more than tenfold in the second quarter.
[...] The Trade Desk has reached more households via CTV in the U.S. today than are reachable through linear TV.
[...] When compared to parallel linear TV ad campaigns, CTV delivered a 51% incremental reach and a 4x improvement when analyzing cost per household reach.
NBC estimates that the split of consumers for its digital properties and linear TV will be 50/50 at the end of 2022, from 70%/30% linear/digital today.
Founder-CEO Jeff Green explained:
“Revenue more than doubled year-over-year to $280 million in the second quarter. Our growth speaks to The Trade Desk’s position as the default DSP for the open internet. Nowhere is this more apparent than in Connected TV, as more premium streaming inventory becomes available to meet growing marketer demand for data-driven TV advertising. From a customer perspective, more of the world’s leading brands, and their agencies, joined our platform, or expanded their relationship with us. This, and our robust international growth in the second quarter, gives us tremendous optimism moving forward. We also recently launched our new trading platform, Solimar, the biggest product launch in our company’s history. Solimar allows advertisers to take advantage of many opportunities in front of them today, with features such as simple and secure onboarding of first-party data; the industry’s most advanced cross-channel measurement marketplace; and advanced, multi-level goal-setting which allows our KOA AI technology to optimize campaigns for the trader.
Q2'21 results: Beat-Beat-Raise: 13% beat on revenue, 4% on EBITDA and 3% on guidance.
• Revenue grew +101% to $280M (vs. +37% Y/Y in Q1) vs. a guidance of +87%.
• Operating margin was 22% (+33pp Y/Y).
• Adjusted EBITDA margin was 42% (+32pp Y/Y).
• Cash flow from operations in H1 FY21 was $85M (vs. $149M in H1 FY20).
• Cash and short-term investments on the balance sheet was $0.7B.
• Customer retention over 95% for the past 7 years.
• Guidance for Q3 FY21 is +31% Y/Y, and an adjusted EBITDA margin of about 35%.
What I like most is the consistent beat and raise performance each quarter. TTD has beaten the expectations in all 20 quarters on both revenue and EPS. Exceptional execution. So if any investor's bear case is due to the 'lofty valuation' then they are into a big wake-up call.
Imagine that TTD keeps beating estimates by 7% each year (average of the last 20Qs) and raise guidance by another 5%...that 12% additional growth each year. So we can start with 2021 revenue at $1B, with the projected growth of 20% for the next 10 years, thats $6B in 2031, but with the additional 7% growth compounded over this period, it could be over $10B. TTD wouldn't be so expensive at just 5x EV/S and possibly 15xPE (for a SaaS-like business)
Highlights:
+The company officially launched its new trading platform Solimar.
+On CTV, the biggest driver of growth for TTD:
The big driver for the exceptional growth was CTV. Jeff Green, The Trade Desk's founder and CEO on the conference call:
"[...] Even as our overall business doubled over the second quarter last year, our CTV business significantly outpaced that growth"
[...] But now we're starting to see our CTV strategy scale more broadly around the world. For example, our CTV revenue in Europe was up more than tenfold in the second quarter.
[...] The Trade Desk has reached more households via CTV in the U.S. today than are reachable through linear TV.
[...] When compared to parallel linear TV ad campaigns, CTV delivered a 51% incremental reach and a 4x improvement when analyzing cost per household reach.
NBC estimates that the split of consumers for its digital properties and linear TV will be 50/50 at the end of 2022, from 70%/30% linear/digital today.
Founder-CEO Jeff Green explained:
“Revenue more than doubled year-over-year to $280 million in the second quarter. Our growth speaks to The Trade Desk’s position as the default DSP for the open internet. Nowhere is this more apparent than in Connected TV, as more premium streaming inventory becomes available to meet growing marketer demand for data-driven TV advertising. From a customer perspective, more of the world’s leading brands, and their agencies, joined our platform, or expanded their relationship with us. This, and our robust international growth in the second quarter, gives us tremendous optimism moving forward. We also recently launched our new trading platform, Solimar, the biggest product launch in our company’s history. Solimar allows advertisers to take advantage of many opportunities in front of them today, with features such as simple and secure onboarding of first-party data; the industry’s most advanced cross-channel measurement marketplace; and advanced, multi-level goal-setting which allows our KOA AI technology to optimize campaigns for the trader.