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.”…



Founder-led company
- Ranked #2 on Forbes Best Places To Work in 2018.”

Ranked very strong #2 in the BB port.

Major pluses:

  1. They make a profit NOW (and have been for a while); and
  2. They’re located in Ventura,CA, away from all the phony atmosphere that pervades Silicon Gulch…