Good article on TMF tonight by Billy Duberstein (free articles) that outlines 4 major strengths for TTD going forward.
“…Networking effect
-By being on the buy side, rather than on the sell side, The Trade Desk has been able to earn a 15% to 20% take rate – the fee charged on a client’s ad spending – higher than that of other companies along the digital ad supply chain.
Profits can expand
-Last quarter, the company had an adjusted EBITDA margin of 20% and an adjusted net income margin of 19.1%. Even better, management has given a long-term target of 40% adjusted EBITDA margins, double the current level.
Huge addressable opportunity
- In 2018, about $2.3 billion of ad spending went through the company’s software platform. That’s only about 8% of the programmatic advertising market, which in itself only made up 4% of the $693 billion in global advertising spending.
-The global ad market is forecast to grow to more than $1 trillion in the next 10 years, with programmatic advertising making up a bigger and bigger slice of the pie over its minuscule penetration today.
Founder-led company
- Ranked #2 on Forbes Best Places To Work in 2018.”
https://www.fool.com/investing/2019/07/16/is-the-trade-desk-…
sjo