Darthtaco,
I think this was an interesting and underrated bit of math you did, so much so that I wanted to highlight it:
Take the aforementioned segments. I don’t think you can find a breakdown exactly from what revenue to what revenue but they did say that revenue for the three “emergerging channels” Native (200% growth), Audio (600% growth), and Connected TV (535% qoq and 1000%Dec to Dec) generated $100M in add spend on TTd platform for 2017. That’s about 1/15th of the $1.55B in spend for the year. They earned $308M in revenue on that spend for about 20%. So they earned maybe $20M in revenue from these emerging segments.
But 20M is still a very small number against their 308M of total revenue. If that even doubles in 2018 I would sit up and notice. I think there is basically 0% chance that it grows to 100M or more in the next year or two, and you can quote me on that. And by that time the growth rate will be much slower. Plus (and this was my real point) these fast-growing segments are just offsetting the slowing growth in their much larger segments. Look for overall revenue growth to continue to slow.
Everyone,
Thanks for the interesting discussion on this thread. I remain convinced that the story here is more compelling than the reality.
Bear