Growth stories don't get much better than The Trade Desk's (TTD 1.75%). The ad-buying software platform company extended its momentum with its recent first-quarter results. Revenue during the period jumped 41% year over year, and non-GAAP earnings per share rose from $0.34 in the year-ago quarter to $0.49. Further, quarterly revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) both came in well ahead of management's guidance, and the company raised its full-year revenue outlook.
But there's a greenfield ahead. Any investor who has listened to the company's earnings calls knows CEO Jeff Green is wildly confident that this is only the tip of the iceberg for programmatic advertising. And Green has the numbers to back it up, including the company's wild growth in connected TV (CTV) ad spend, a massive addressable market, and more.
Image source: The Trade Desk.
With such an important growth opportunity ahead, The Trade Desk has no intention of resting on its laurels. Earlier this week, the company hired its first chief revenue officer, Jonathan Carson, to focus on revenue generation and client acquisition.
The Trade Desk's first chief revenue officer
"In this new role, Carson is responsible for scaling The Trade Desk's business development organization to continue the company's rapid global growth," said The Trade Desk in a press release about its latest executive hire.
Carson comes from Vevo, a music video and entertainment platform, where he served as the company's chief revenue officer. Before working at Vevo, Carson was CEO of digital for Nielsen, a company focused on market research and insight into consumers' watching, listening, and buying habits. Carson came to Nielsen through an acquisition of media analytics company BuzzMetrics, which he co-founded.
Carson "will help us continue to gain share in the global digital advertising market, including new channels such as Connected TV, and massive emerging consumer markets, such as China," said Green.
The growth story
Fast-growing advertising channels behind The Trade Desk's revenue growth are impressive. Connected TV and audio ad spend, for example, increased three times and 270% year over year in Q1. Total mobile ad spend rose 45% year over year.
But there's more growth to come. Magna Global estimates that programmatic will be a $60 billion market in 2022. In addition, Green believes nearly all advertising will eventually be transacted programmatically.
More awareness for brands and ad agencies about the opportunity in programmatic advertising, particularly in connected TV, could accelerate growth. Consider Green's comments from the company's first-quarter earnings call about growing ad inventory in the channel:
Nearly every quarter, we have some breakthrough to report in this key channel. Q1 2019 is no exception. Our CTV inventory continues to grow. More channels, users, and more ad opportunities joined our platform this quarter. In Q1, advertising slots available through our platform increased over three times.
Investors will be looking for Carson to capitalize on this opportunity.
