Why I sold out of TTD

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Hello Ben,

We were not given precise numbers so it is fun to attempt to project the actual CTV revenue for
TTD in the recently reported quarter. I used the Pareto Principal to make the following estimate:

  1. hundreds was assumed to be 250
  2. Surely some of the 250 spent more over $100,000 than others. I used an average of $120,000 for the top 250. This equals $30 million of spend.
  3. Surely some other customers spent close to $100,000 so I assumed an average of $80,000 for the next 100 = $8 million of spend.
  4. Surely some other customers spent some on CTV. I assumed that the above 350 represented 20% of customers purchasing CTV. Under Pareto theory, the top 20% spent 80% of the total, therefore the total spend was 38/.8 = $47.5 Mil. and TTD’s take at 20% = $9.5 mil. or 7.85% of revenues.

No science here, but I think we can safely assume that Q1 2019 produced more than $6 mil. of CTV revenue.

Best regards,

Mike

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