TTD Earnings call

Investment Analysis Clubs Saul’s Investing Discussions
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Call just ended, I wasn’t able to sit and take notes, but if you own shares or are thinking of buying some, I recommend listening to at least the beginning of it when they put the recording of the replay on the investor relations site. The first 15 minutes or so Jeff Green really explains well why the opportunities and TAM for them will be so huge and why TTD is so well positioned (and hence why TTD is one of my biggest holdings).

http://investors.thetradedesk.com/news-releases

It’s actually worth listening to the whole call and the Q&A if you are able to just throw on headphones in the office tomorrow while you’re working on something, as there really wasn’t anything that was overly techy-speak or too ad-industry focused, it’s easy to follow everything they are talking about, especially compared to some of the calls they do for the other cloud companies we follow.

Couple things I found interesting

  1. they talked about how when baseball games go into extra innings, that is sometimes the most watched, highest ratings part of the game, yet traditionally the station has had to almost give away the ads during extra innings since nobody would predict in advance that the game would go for an extra hour and place an advertisement purchase based on that. As connected tv becomes more mainstream, they can check real-time demand for those slots (and vice versa advertisers can check out real-time supply for ad space that suddenly looks a lot more valuable) and connect buyers and sellers to get the right ads in front of the right eyeballs for pricing that is good for the content owner (tv station) and also valuable to the advertiser.

  2. the last question of the Q&A was about their audio (non-video) ad business, which I don’t typically think about much with TTD, but apparently is growing very fast (the caller said almost as fast as connected TV). Apparently those ads are valuable because the times that people are listening to audio ads (when working out at the gym or driving in a car, etc) are times when they are less likely to skip through an ad, or to ignore the advertisement, so better engagement which is great for advertisers, compared to if they are sitting at their computer watching videos on youtube, etc.

-mekong

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Just listened to it live, and Green is an absolute master of his subject.

The two things that struck me:

He answered ALL of the questions himself, rather than in most ECs where the CFO or someone else has to chip in.

Nearly all the analysts congratulated TTD on their results which usually signals price upgrades in the next 24-48 hours.

I have every confidence that this will continue to e one of my largest holdings and will do very well both this year and in the next 5-10 years.

Cheers, PB.

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Nearly all the analysts congratulated TTD on their results which usually signals price upgrades in the next 24-48 hours.

I counted 3 congrats, on the unscientific “Congrat-O-Meter”

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Someone was hand wringing earlier about TTD being red …let me tell you something…earnings night, strange and weird things happen.,…market makers are optimizing their positions on weak hands…they can sell 10 percent of their shares on the low volume, and maybe improve their position in the morning by a few percent…it’s all nonsense if you have a position that you are holding past the next option expiration…as I type this… TTD is only down a few percent… I would wager two whole hogs and half a steer that by 10:30 tomorrow TTD is green…and by next week, nobody remembers the price movements over the last 12 hours, but are increasing their positions.

Know the game you are playing.

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I listened to the call and am glad I did. I don’t think I realized how well positioned this company is. They are at the epicenter of some of the fastest growing channels in a massive market. They have done a masterful job of molding themselves into a great steward of data. They will not transact with you if you do not value the consumer and their privacy. They just seem to ooze immense value to advertisers and content providers. I believe dominoes will start to fall now that Amazon has broken the ice in the walled garden space, especially with regulatory scrutiny recently. TTD is primed to capitalize on that. All in all a nice quarter, but the next year is shaping up to be special.

I added to position after hours.

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I would wager two whole hogs and half a steer that by 10:30 tomorrow TTD is green.
ok, it was green by 9:30. Please let me know where to deliver the hogs and steer, and how much you want as burger vs. steak.

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