The Trade Desk has delivered strong and “outstanding performance” for its first quarter ended March 31, 2023.
The global technology platform for buyers of advertising reported revenue growth of 21% year-over-year to $383 million.
Jeff Green, co-founder and CEO of The Trade Desk, said: “We delivered outstanding performance in the first quarter, once again outpacing the digital advertising market, growing revenue 21% year-over-year to $383 million.
“Our strong start to the year is testament to the increasing value that marketers place on objective, transparent, data-driven media buying on the open internet.”
Green noted that 2023 has already proven to be a “pivotal year” for the industry. He said: “The shift from linear to connected TV continues to accelerate, and fully decisioned programmatic will feature more prominently than ever at this year’s upfronts.
“At the same time, more leading marketers are leveraging new innovations, such as shopper data, to better understand the relationship between campaign activity and consumer action. As The Trade Desk continues to innovate in these and many other areas, we are well positioned to deliver premium value to our clients and gain share.”
First Quarter and Recent Business Highlights:
• Strong Customer Retention: Customer retention remained over 95% during the first quarter, as it has for the past nine consecutive years.
• Continued Collaboration and Support for Unified ID 2.0: The Trade Desk is building support for Unified ID 2.0 (UID2), an industry-wide approach to identity that preserves the value of relevant advertising, while putting user control and privacy at the forefront. UID2 is an upgrade and alternative to third-party cookies. Recent partnerships and pledges of integration and support include:
◦ In March, on stage at Forward ’23: Always On, NBCUniversal announced it is implementing UID2 on Peacock across all devices and consumer touchpoints, including on CTV, the web, apps and devices.
◦ In February, Rave, a leading group video-viewing platform with over 70 million users announced its support and enablement of UID2.
◦ In January, Paramount Advertising announced its integration with UID2 to scale identity on its CTV inventory.
• OpenPath: OpenPath gives our clients a simplified, direct connection to participating premium publishers across the open internet. By supporting an objective, transparent supply path, OpenPath helps to maximise value for everyone involved. OpenPath is already live with a series of publishers representing thousands of destinations across connected TV, mobile, display and audio.
• Industry Recognition (2023):
◦ Digiday Video and TV Awards – Best TV/Streaming Ad Sales Product of the Year
◦ Business Insider Rising Stars of AdTech – Ellen Mulryan, Sr. Dir. of Retail Data Partnerships
◦ Quadrant Knowledge Solutions SPARK Matrix for Ad Tech – Technology Leader
◦ Stevie Awards for Customer Service Success – Bronze, Technology Industries
• Share Repurchases: $293 million of Class A common stock was repurchased in the first quarter of 2023. As of March 31, 2023, The Trade Desk had $407 million available and authorised for repurchases.
Meanwhile on the transition of chief financial officer, the Trade Desk has named Laura Schenkein as the successor of the outgoing Blake Grayson. He leaves the company for a senior finance role outside the advertising technology industry after a transition period.
Schenkein will assume her new role effective June 1, 2023.
The Trade Desk CEO Green said: “Blake has been instrumental in scaling and advancing our finance function in a way that has helped us thrive and grow during the unprecedented events of the last three years. He leaves a very strong foundation for future growth, and I want to thank him for his partnership and support in a seamless transition.”
“Laura Schenkein is a veteran of almost 20 years in finance and investment banking, the last decade of which she has held a series of leadership positions at The Trade Desk.”
“She is a trusted advisor to me and other senior leaders at the company, based not only on her unparalleled understanding of the financial dynamics of The Trade Desk, but also the macro-market drivers of our business. I could not be more excited to welcome Laura to our leadership team.”
Grayson added: “I am very grateful for the opportunity to have worked closely with Jeff and the outstanding team at The Trade Desk over the past three years, and I look forward to cheering on the continued success of the company in the years ahead.”