My high-level investment thesis on The Trade Desk $TTD

Still applies now as it did back then.

1. TAM is huge and growing. $TTD estimates $1 trillion in Ad Spend by 2027, 2/3rd coming from digital spend.
2. Within this, Programmatic Advertising is still a relatively small pie that is growing at a 20% clip
3. Programmatic Advertising has many advantages, and it’s hard to see a world where the majority of Ad Spend won’t be programmatic. Data-driven is better than guessing.
4. Obvious tailwinds: Ad Spend moving towards digital. More businesses becoming digital ones, all competing for users. Could see an additional bump this year due to the election.
5. CEO track record: Sold previous company to Microsoft. Green doesn’t need the money and can stay independent this time around
6. Opening up “Unified ID” was a strong strategic move. User profiles are anonymous and they are an independent platform. They are Switzerland, representing the open Internet. It’s the first serious attack on FB and Google’s walled garden in a long time.
7. Leading in CTV, which will clearly replace traditional TV, which in itself is a huge market of over $200b. Measuring the effectiveness of Ad Spend on “TV” is a once in a lifetime opportunity. This will attract other players, e.g Roku can turn from a partner into a competitor
8. China expansion. Baidu, Alibaba, Tencent, Bytedance are on board. FB/Google are not in China.
9. More profitable business model than SaaS
10. It is remarkable that $TTD is profitable given its high investment into various initiatives to become the de facto market leader. This shows a high level of discipline and execution.
Has shown strong execution against all these points quarter over quarter.

Last quarter $TTD:

Revenues +32%
CTV +100%
Mobile +70%
Audio +70%

Looking forward to the next 10 years!
You can follow @reshoftc.
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