Q4 2021 Trade Desk Inc Earnings Call

February 16, 2022

our GAAP financial results, we also present supplemental non-GAAP financial data. A reconciliation of the GAAP to non-GAAP measures can be found on our earnings press release. We believe that providing non-GAAP measures combined with our GAAP results provides a more meaningful representation of the company's operational performance. I will now turn the call over to founder and CEO Jeff Green. Jeff?

We also present supplemental non-GAAP financial data a reconciliation of the GAAP to non-GAAP measures can be found in our earnings press release, we believe that providing non-GAAP measures combined with our GAAP results provides a more meaningful representation of the company's operational performance I will now turn the call over to founder and CEO .

Jeff Green Jeff.

Thanks, Chris. Good morning and thanks to everyone for joining us today. Q4 2021 was another outstanding quarter for the trade desk and an exclamation point on a terrific year across the board. We exceeded all our goals for 2021, which culminated in crossing the billion dollar revenue mark, ending the year with one point two billion dollars in annual revenue, an increase of 43 percent year over year.

Thanks, Chris Good morning, and thanks to everyone for joining US today Q4, 2021 was another outstanding quarter for the trade desk and an exclamation point on a terrific year across the board we exceeded all our goals for 2021, which culminated in crossing the $1 billion revenue Mark ending the year with one.

$2 billion in annual revenue, an increase of 43% year over year.

Total platform spend was almost $6.2 billion. It's only 10 years ago, May of 2011, when we received our first penny of spend. To think, last year we passed $6 billion in spend. It is both astonishing, to think there were solid investments here Hopeust was at the API here.

Total platform spend was almost $6 2 billion.

It's only 10 years ago May of 2011, when we received our first penny of spend to think last year, we passed 6 billion in spend.

It is both astonishing and inspiring.

I say that because I truly believe that we are just getting started with our innovation, our amazing team, our unrivaled customer service and a growing roster of global partnerships. I am convinced that we will continue to outperform in an addressable advertising market that is racing toward a $1 trillion camp.

I say that because I truly believe that we are just getting started with our innovation our amazing team, our unrivaled customer service and a growing roster of global partnerships I am convinced that we will continue to outperform in an addressable advertising market that is racing towards a one trillion Tam.

One aspect of our business in 2021 that was particularly encouraging was the pace at which we signed major customer agreements.

One aspect of our business in 2021 that was particularly encouraging was the pace at which we signed major customer agreements as the year progressed, we signed an increasing number of long term commitments with some of the largest brand advertisers in the world last year in the top 25 advertisers on our.

As the year progressed, we signed an increasing number of long-term commitments with some of the largest brand advertisers in the world. Last year, the top 25 advertisers on our platform increased their spend on the platform more than 50% compared to the prior year.

Platform increase their spend on the platform more than 50% compared to the prior year and Thats before some of these long term agreements have fully activated momentum is also growing due to increase awareness and understanding of our value among brand marketers and their agencies.

And that's before some of these long-term agreements have fully activated. Momentum is also growing due to increased awareness and understanding of our value among brand marketers and their agents.

I'd like to spend my time today looking back on the highlights of 2021, but also discuss the factors that are shaping 2022 into what I expect will be the most impactful year TTD has ever had. I believe this will provide color on why brand marketers are increasingly gravitating to our platform.

I'd like to spend my time today looking back on the highlights of 2021, but also discuss the factors that are shaping 2022 into what I expect will be the most impactful year CTV has ever had I believe this will provide color on why brand marketers are increasingly gravitating to our platform.

Looking back on 2021, one of the highlights was the launch of our biggest product ever, Solomar. As you know, we launched Solomar on 7.7 after years of investment.

Looking back on 2021, one of the highlights was the launch of our biggest product ever solar Marc as you know we launched <unk> on 77 after years of investment.

But as with any major platform overhaul, there's always the question of exactly what the impact will be.

But as with any major platform overhaul. There is always the question of exactly what the impact will be the.

The answer is that Solomar has been an upgrade to our business in every way. It helps advertisers and agencies embrace completely new ways of thinking about success, measurement, goal setting, and campaign optimization.

The answer is that <unk> has been an upgrade to our business in every way it helps advertisers and agencies embrace completely new ways of thinking about data measurement goal setting and campaign optimization.

And I'm pleased to report that as of today, the majority of ad impressions on our platform are now bought via Solomar.

And I am pleased to report that as of today. The majority of AD impressions on our platform are now bought VSO tomorrow at.

At the current pace, we expect to deprecate the legacy platform before the fourth quarter of this year.

to accomplish a complete transition to the new platform within about a year.

To accomplish a complete transition to the new platform within about a year.

impressive feat by anyone standards and it speaks to the value that advertisers are realizing with S752 central the

Is an impressive feat by anyone's standards and it speaks to the value that advertisers are realizing with solo more.

Solomar was created to help advertisers make better data driven decisions at every step of the marketing funnel. And in doing so, take full advantage of the power of the open Internet. We wanted to make setup easier and decisions more data driven. We also wanted to make certain that our AI and machine learning product branded Iowa was always on when the benefit was obvious.

<unk> was created to help advertisers make better data driven decisions at every step of the marketing funnel and in doing so take full advantage of the power of the open Internet, we wanted to make setup easier and decisions more data driven we also wanted to make certain that our AI and machine learning product branded as co op.

With always on when the benefit with obvious.

With a better blend of human and machine, advertisers can apply the right data automatically. And Solomar can optimize everything from predictive clearing to audience targeting to price discovery. Every ad campaign becomes more effective. Every ad dollar is working as hard as it can. And as a result, the flywheel spins faster, activating even more campaign dollars. Let me share some data about how the...

With a better blend of human and machine advertisers can apply the right data automatically and solar market and optimize everything from predictive clearing to audience targeting to price discovery every AD campaign becomes more effective every AD dollar is working as hard as they can and as a result, the flywheel spin faster activating even more calm.

Dollars.

Let me share some data about how the move to solar Mara is going.

First co adoption on Soma is now over 90% nearly 50% higher than with the legacy platform.

First, co-adoption on Solomar is now over 90%, nearly 50% higher than with the legacy platform.

Now nearly all of our advertisers are getting richer data driven insights and recommendations on how to reach and measure their target audiences most effectively. And across the full scope of channels to optimize performance.

Now nearly all of our advertisers are getting richer data driven insights and recommendations on how to reach and measure their target audiences, most effectively and across the full scope of channels to optimize performance.

In fact, average channel usage for Solomar campaigns has also increased about 50%. With Solomar, advertisers get a better perspective on cross-channel performance and insight into how an omnichannel campaign can take a consumer through an integrated advertising experience.

In fact average channel usage for solo Mark campaigns have also increased about 50%.

With all of our advertisers get a better perspective on cross channel performance and insight into how an omnichannel campaign can take a consumer through an integrated advertising experience.

And finally, and probably one of the most important changes, for those advertisers that have switched to Solomar, the average number of data elements applied to each impression has more than doubled.

And finally, and probably one of the most important changes for those advertisers that have switched to Soma. The average number of data elements applied to each impression has more than doubled.

Many of the amazing results we are seeing from Solomar are due to restructuring of our data market.

Many of the amazing results, we are seeing from some of them are due to restructuring of our data marketplace and the courage of our data partners to try something new in the hopes of upgrading the entire open internet.

and the courage of our data partners to try something new in the hopes of upgrading the entire open internet. As a result, Solomar is a bit of a two for one. A better decision engine.

As a result, <unk> is a bit of a two for awhile.

Better Decisioning engine and a better data marketplace, let me spend a moment on the improved data marketplace as it represents a significant upgrade to how the entire industry currently thinks about data and data pricing.

Let me spend a moment on the improved data marketplace as it represents a significant upgrade to how the entire industry currently thinks about data and data price.

Until now, I would describe the marketplace for data in digital advertising as somewhat anemic. And that's largely because of the way that data has traditionally been priced across the web. In Wild Gardens, data pricing is opaque with effectively zero price discussion.

Until now I would describe the marketplace for data and digital advertising is somewhat anemic and thats largely because of the way that data has traditionally been price across the web and walled garden data pricing is opaque with effectively zero price discovery in.

In the open web, historically data pricing has been more fixed than variable, which leaves little room for price discovery or even value.

And the open web historically data pricing has been more fixed than variable, which leaves little room for price discovery or even value discovery is akin to a real estate agent charging a fixed dollar rate regardless of the value of the home that's being sold in.

is akin to a real estate agent charging a fixed dollar rate, regardless of the value of the home that's being sold. In the case of data, that has meant that each data element could be too expensive relative to the value of the impression. This also then becomes an inhibitor to advertisers who want to apply a full scope of data to every impression.

In the case of data that has meant that each data element could be too expensive relative to the value of the impression. There's also then becomes an inhibitor to advertisers who want to apply our full scope of data to every impression.

But with all of them are in the new data marketplace, we have shifted our data pricing model away from fixed rates toward percentage of CPM.

But with Solomar and the new data marketplace, we have shifted our data pricing model away from fixed rates toward percentage of CPM.

This would never have been possible without the support and commitment of the hundreds of data partners who participate on our platform and who were willing to make this change. This allows for much greater flexibility and data deployment based on both value and relevance.

This would never have been possible without the support and commitment of the one hundreds of data partners, who participate on our platform and who we're willing to make this change. This allows for much greater flexibility and data deployment based on both value and relevance we have created a market where there is more.

We have created a market where there's more accurate price discovery for data, which is more closely aligned to the value it creates instead of high fixed rate.

Accurate price discovery for data, which is more closely aligned to the value it creates instead of high fixed rates.

Additionally, there's another major data marketplace design change that will fully roll out in the first half of 2022. This change will address the major obstacle to cure the open Internet data anemia. Currently, there is a bit...

Additionally, there is another major data marketplace design change that will fully rollout in the first half of 'twenty two this change.

We will address the major obstacle to cure the open internet data anemia.

Currently there is a disincentive.

to layer multiple data elements onto the same impression because the cost is prohibitive. And price discovery has been a problem.

You layer multiple data elements onto the same impression because the cost is prohibitive and price discovery has been a problem.

With variable pricing now universal in our data marketplace, we can now add fractional price.

With variable pricing now universal and our data marketplace, we can now add fractional pricing.

This means we can offer, for example, a basket of data options for customers that in total doesn't necessarily cost them more, but activates more data sources and pays the supplier based on precise value created for the advertiser. In doing so, data providers have the opportunity to make more money and aggregate data sources.

This means we can offer for example, a basket of data options for customers that in total doesn't necessarily cost them more but activates more data sources and paste supplier based on precise value created for the advertiser and doing so data providers have the opportunity to make more money in aggregate.

This creates incentive to use data whenever it adds value and rewards data companies for the value they create.

We expect that this will create the most robust data marketplace ever on the open internet. Not only will the open internet benefit, but we will be able to layer in more data, significantly enriching each ad impression for the advertising.

We expect that this will create the most robust data marketplace.

<unk> on the open Internet.

Not only will be open internet benefit, but we will be able to layer in more data significantly enriching each ad impression for the advertiser.

In total, this increases the use of data. As we enrich each impression, advertisers on our platform become more effective and they invest more. Already our data marketplace changes have been so successful that we have seen advertiser bid win rates increase significantly. Because they have been much more precise in understanding the value of each ad impression.

In total this increases the use of data as.

As we enrich each impression advertisers on our platform become more effective and they invest more.

Already our data marketplace changes have been so successful that we have seen advertiser bid win rates increased significantly because they had been much more precise in understanding the value of each ad impression.

Again, this means advertisers are inclined to spend more because they are achieving even better ROI, making the flywheel spin faster.

Again this means advertisers are inclined to spend more because they are achieving even better ROI, making the flywheel spin faster.

Looking back on another highlight from this last year, we blaze new trails in the rapidly emerging world of shopper marketing, another green field that is open to us because of the use of data.

Looking back on another highlight from this last year, we blaze new trails in the rapidly emerging world of shopper marketing. Another greenfield that is open to us because of the use of data.

As of the fourth quarter, we are up and running with the Walmart DSP with select major advertisers. The initial results have been very encouraging.

Bic is one of the early adopters. As you probably know, Bic is headquartered in France, but is a global leader in consumer products such as ballpoint pins, lighters, and grooming.

<unk> is one of the early adopters as you probably know biggest headquartered in France, but as a global leader in consumer products, such as ballpoint pen lighters and grooming.

And Walmart is a major retail partner for them. In December , Bic ran holiday campaigns for some key products, including men's and women's razors, using the new Walmart VSP. The results were even better than we hoped for. Bic achieved return on ad spend, or ROAS, of just under 500%. That means for every advertising dollar, they drove $5 in consumer purchase.

And Walmart is a major retail partner for them in December Big brand holiday campaigns for some key products, including mens and womens razors using the new Walmart DSP. The results were even better than we hoped for <unk> achieved return on AD spend or ROE as of just under 500%.

That means for every advertising dollar they drove $5 in consumer purchases.

This data is significant for a few reasons. First, with closed loop measurement, BIC is able to get a very rapid assessment of ROAS.

This data is significant for a few reasons first with closed loop measurement, because you're able to get a very rapid assessment of rollout.

The shopper data available in the Walmart DSP makes it much easier for brands like Bic to make the connection between campaign spend and consumer purchase. And second, ROAS of 500% is well above the industry average. According to Nielsen, a good ROAS is around 270%. So to take an industry standard benchmark and almost double it is pretty stacked.

The shopper data available in the Walmart Dfc makes it much easier for brands like <unk> to make the connection between campaign spend and consumer purchase and second row as 500%.

Is well above the industry average according to Nielsen a good ROE as is around 270% so to take an industry standard benchmark and almost double it is pretty staggering.

Matt DePaulo is BIC's senior manager of omnichannel growth, and he recently spoke about the power of the Walmart DSP. To quote him directly, he said, I don't want to overstate it, but this is something the industry has been waiting for for a very long time. And now we finally have it at our disposal. We had suspected that the trade desk would be a powerful complement to Walmart's capabilities, and this validated our suspicion.

Matt The Apollo is <unk> senior manager of Omnichannel growth and he recently spoke about the power of the Walmart DSP.

To quote him directly he said I don't want to overstate it but this is something the industry has been waiting for for a very long time and now we finally have at our disposal. We had suspected that the trade desk will be a powerful complement to Walmart capabilities and this validated our suspicion.

<expletive> represents the sentiment of many advertisers. They want retail data to help them improve and their ad spend in digital.

This represents the sentiment of many advertisers they want retail data to help them improve and their AD spend in digital.

They want to better understand how media moves people through the purchase journey. I firmly believe that 2022 will be the year that advertisers start to realize the power of shopper marketing. Walmart is leading the charge.

I want to better understand how media moves people through the purchase journey I firmly believe that 2022 will be the year that advertisers start to realize the power of shopper marketing Walmart is leading the charge here.

Amy Landse is the Commerce Practice Lead at Publix for North America.

Jamie Lindsay is the commerce practice lead equivalent test for North America.

She recently spoke with The Current, our online news site, about how the Walmart DSP is capturing the attention of CMOs who previously weren't as hands-on with the retailers. To quote her directly, she said, it used to be that you would negotiate how you got a better display in a physical store. Now it's a dynamic conversation that includes their digital shelves and how brands can reach Walmart shoppers who are outside the retailer's ecosystem.

She recently spoke with the current our online news sites about how the Walmart DSP is capturing the attention of Cmos, who previously werent has hands on with the retailers to quote her directly she said it used to be that you would negotiate how you've got a better display in a physical store now has a dynamic conversation.

And that includes their digital shelves and how brands can reach Walmart shoppers, who are outside the retailer's ecosystem.

In the coming quarters, we'll have more to say about how we're partnering with other retailers in innovative ways to unlock the power of shopper marketing data for advertisers. As I mentioned, this is just one of the areas where brand marketing leaders are getting a greater appreciation of the value of programmatic.

In the coming quarters will have more to say about how we're partnering with other retailers in innovative ways to unlock the power of shopper marketing data for advertisers as I mentioned. This is just one of the areas where brand marketing leaders are gaining a greater appreciation of the value of programmatic.

When looking back on the amazing success and land grab year that was 2021, it is impossible to not spend some time talking about the rise of CTV. In 2021, CTV was once again the largest driver of spend on our platform. Last year, more than 15,000 advertisers spent on CTV on our platform. And we saw the number of advertisers that spent over $1 million in CTV, almost double compared to 2020.

When looking back on the amazing success in land grab here that was 2021 it is impossible to not spend some time talking about the rise of CTV and.

In 2021, CTV was once again the largest driver of spend on our platform last year more than 15000 advertisers spent on CTV on our platform and we saw the number of advertisers that spent over $1 million in CTV almost double compared to 2020.

And I highlight CTV again because it is such an important driver of the brand shift to programmatic more broad.

Highlights CTV again, because it is such an important driver of the brand shifts to programmatic more broadly for.

For most brands, TV is the largest element of their advertising campaign.

For most brands TV is the largest element of their advertising campaigns. The TV team is often the power center of our brand marketing Department as TV Digitizes. Thanks to the massive consumer shift to streaming advertisers are embracing the power of programmatic in their most significant channel.

The TV team is often the power center of a brand marketing department.

<unk> TV advertisers realize its potential to focus rapidly shifts to the value of programmatic in an omnichannel context, and this is what I mean, when I said in the past that CTV is probably the most important driver of change across digital advertising.

And this is what I mean when I said in the past that CTV is probably the most important driver of change across digital advertising.

Of course, it is not just the consumer shift that's driving advertisers to embrace CTV. TV content companies are also evolving their models at warp speed. And we continue to partner with all of the major CTV providers worldwide. Each year, the inventory avails on our platform continue to rapidly increase.

Of course, it is not just the consumer shift that's driving advertisers to embrace CTV TV content companies are also evolving their models at work speed and we continue to partner with all of the major CTV providers worldwide each year the inventory available on our platform continue to rapidly increase and.

And as we enter this year's upfront season, I expect we'll continue to see large TV companies further prioritize CTV as a part of that process. Indeed, the trade desk has already been invited to participate in some of the digital upfront programs this year.

As we enter this year's Upfronts season, I expect we'll continue to see large TV companies further prioritize CTV as a part of that process. Indeed, the trade desk has already been invited to participate in some of the digital upfront programs. This year.

And while we've talked a lot in recent quarters about partnerships with major TV content companies in North America and Europe , the same dynamic is happening now where viewers are also rapidly shifting to CTV or OTT.

And while we've talked a lot in recent quarters about partnerships with major TV content companies in North America and Europe . The same dynamic is happening now in Asia, where viewers are also rapidly shifting to CTV.

Our OTT.

For example, we recently launched Gao, one of the fastest growing streaming platforms in Japan. Regardless of location, major brand advertisers increasingly realized the vital role that CTV plays in reaching audiences that have left or were never present on linear TV.

For example, we recently launched Gal one of the fastest growing streaming platforms in Japan, regardless of location major brand advertisers increasingly realize the vital role that CTV players and reaching audiences that have left or were never present on linear TV.

We recently ran a campaign for one of Europe's top carmakers, Renault, in Spain, working with their agency, Omnicom.

We recently ran a campaign for one of Europe's top carmakers, Renault and Spain, working with their agency Omnicom.

The campaign focused on a launch of a new SUV in Spain and were not wanted to reach as many potentially interested car buyers as possible.

That campaign focused on our launch of a new SUV in Spain and were not wanted to reach as many potentially interested car buyers as possible with CTV, where now achieved a significant double digit incremental reach over linear.

With CTV, Renald achieved a significant double digit incremental reach over linear.

We're seeing the same phenomenon with brand advertisers around the world. They're embracing CTV as an essential element of their massive TV ad campaign. And because of the outsized effect that TV has on most marketing departments, this growing adoption spins the flywheel faster for us across all advertising channels.

We're seeing the same phenomenon with brand advertisers around the world. They are embracing CTV as an essential element of their massive TV AD campaign and because of the outsized effect that television has on most marketing departments. This growing adoption spins the flywheel faster for us across all advertising channels.

Now switching gears a bit, I'd like to talk about the future and why 2022 is set up to be our biggest year ever, not just in financial performance, but also in strategic leadership and increasing our market share.

Now switching gears a bit I'd like to talk about the future and why 2022 is set up to be our biggest year ever not just in financial performance, but also in strategic leadership and increasing our market share.

Yesterday, we announced another very big initiative, Open Path. This is the biggest direct step we've made yet to improve the supply chain for our clients, us, and the open Internet.

Yesterday, we announced another very big initiatives open path. This is the biggest direct step we've made yet to improve the supply chain for our clients.

And the open Internet.

Let me take a moment to explain what this is. Open path is a product that enables content owners from TV and across the web to plug in to TTV directly. Open path is a direct pipeline to publisher inventory for any publisher that chooses to integrate directly with us.

Let me take a moment to explain what this is open path is a product that enables content owners from television and across the web to plug into TPB directly.

Open path as a direct pipeline to publisher inventory for any publisher that chooses to integrate directly with us.

An inefficient supply chain is bad for advertisers and for public.

An inefficient supply chain is bad for advertisers and for publishers. We are very pleased to launch open path with some of the largest journalistic publishers in the world, including the Washington Post Con Dynast, Reuters the Tribune and USA today.

We are very pleased to launch Open Path with some of the largest journalistic publishers in the world, including The Washington Post, Conde Nast, Reuters, The Tribune, and USA Today.

Open Path is especially helpful for larger publishers and content owners that want to do their own yield management. We are not competing with SSPs or becoming an ad network. We represent the advertisers in the office.

Open path is especially helpful for larger publishers and content owners that want to do their own yield management. We are not competing with fsp's are becoming an AD network, we represent the advertisers in the auction.

Our goal in creating this product is to provide a high bid directly to publishers and content owners who want to do their own yield management.

Our goal in creating this product is to provide a high bid directly to publishers and content owners, who want to do their own yield management.

One of our core operating principles since our inception is the pursuit of a level playing field for digital advertising with transparency on all sides. We believe that's the best way to build trust in digital advertising, which will drive overall market growth. And we also believe that on a level playing field, everyone gets to compete fairly on the value they provide.

One of our core operating principles since our inception is the pursuit of a level playing field for digital advertising with transparency on all sides.

Believe that's the best way to build trust and digital advertising, which will drive overall market growth and we also believe that on a level playing field everyone gets to compete fairly on the value they provide.

As a demand-side platform, we're confident that on a level playing field, we will continue to outperform and gain more market share of the growing TANF.

As the demand side platform, we're confident that on a level playing field, we will continue to outperform and gain more market share of the growing Tam.

With this product launch, we also announced that we are no longer buying from Google's so-called open bidding or OB product. You may recall that open bidding is one of the main focus areas of recent antitrust lawsuits against Google, including the one from the Texas State Attorney General's Office.

With this product launch we also announced that we are no longer buying from Google So called open bidding or Ob product you may recall that open bidding is one of the main focus areas of recent antitrust lawsuits against Google, including the one from the Texas State Attorney General's office with this and as part of our ongoing supply chain.

With this, and as part of our ongoing supply chain optimization initiatives, we will continue to prune supply paths that are opaque, unfair or inefficient. That said, we plan to continue to buy on Google's ada-

Optimization initiatives, we will continue to prune supply paths that are opaque unfair or inefficient.

<unk> said, we plan to continue to buy on Google's AD exchange.

For all the SSPs that provide yield optimization for publishers, we expect that this product and policy change will result in more spend to them.

Where all the SSP provide yield optimization for publishers, we expect that this product and policy change will result in more spend for them.

You might be interested as to why we started with journalism in terms of our initial partner.

You might be interested as to why we started with journalism in terms of our initial partners.

Journalism has more at stake than perhaps any other market segment here. Journalism relies on advertising and the ad model for newspapers of 30 years ago has evolved into something very different today.

Journalism has more at stake than perhaps any other market segment here journalism relies on advertising and the AD model for newspapers of 30 years ago has evolved into something very different to that.

It's vital that we preserve the value exchange of advertising for journalism content, because journalism is such an important factor in the free flow of trusted information in any functioning society.

But Open Path will scale to any publisher that wants a direct path to our demand.

But open path will scale to any publisher that once a direct path to our demand.

Let me just reiterate that this does not mean that the trade desk is getting into the SSP or the supply side business.

Let me just reiterate that this does not mean that the trade desk is getting into the S&P or the supply side business. This is not about that at all we won't be getting into yield management or any of the various value proposition that a number of the great Ssp's provide open path is simply a direct path into inventory.

This is not about that at all. We won't be getting into yield management or any of the various value propositions that a number of the great SSPs provide. Open path is simply a direct path into inventory. This is something that our advertising clients have been asking us for for a long time.

Is this something that our advertising clients have been asking us for for a long time.

and they become more aware of the supply side inefficiencies over the past few months.

And they become more aware of the supply side inefficiencies over the past few months the.

The impact will be positive for SFPs that have invested in their publisher relationships and are offering value in terms of yield management.

The impact will be positive for ssp's that have invested in their publisher relationships and are offering value in terms of yield management.

from companies such as Magnite, Pubmatic, and Index Exchange. As with any maturing market, as it becomes more efficient, the companies that succeed will be the ones that provide clear value and differentiate themselves to customers.

From companies, such as magnate problematic and index exchange as with any maturing market as it becomes more efficient the companies that succeed will be the ones that provide clear value and differentiate themselves to customers.

As I said, we are launching Open Path in partnership with some of the world's leading journalistic outlets.

As I said, we are launching open path in partnership with some of the world's leading journalistic outlets.

they have been incredibly enthusiastic about this initiative. Hopefully you saw some of the press coverage yesterday, but just to quote a couple of them, Condé and Ash said, we are pleased to be working with the Trade Desk on Open Path to enable deeper conversations with our clients about inventory transparency and performance.

They have been incredibly enthusiastic about initiatives hopefully you saw some of the press coverage yesterday, but just to quote a couple of them content asset. We are pleased to be working with the trade desk on open path to enable deeper conversations with our clients about inventory transparency and performance.

The Washington Post said, we have long believed that a more streamlined supply chain benefits both advertisers and publishers.

The Washington post that we have long believed that a more streamlined supply chain benefits, both advertisers and publishers and.

And McClatchy said, Open Path aligns with our objective to build a transparent, well-lit digital ad environment driven by journalism that strengthens the communities we serve.

In Mcclatchy said open path aligns with our objective to build a transparent well digital AD environment, driven by journalism that strengthens the communities we serve.

Those are just a few, but I could not be more excited about the early momentum for OpenPath. Of course, another area I'm especially excited about for 2022 is the progress the industry is making with UID.

Those are just a few but I could not be more excited about the early momentum for open path.

Of course, another area I'm, especially excited about for 'twenty. Two is the progress the industry is making with <unk>.

More major publishers around the world are committing to UID2, and more advertisers are transacting on UID2 on our platform.

More major publishers around the world are committing to USD, two and where advertisers are transacting on <unk> on our platform kg media, Indonesia biggest media network is the latest publisher in Asia to announce it support of USD two <unk>.

KG Media, Indonesia's biggest media network, is the latest publisher in Asia to announce its support of UID2. KG boasts an extensive portfolio of publishing properties, including newspapers, TV networks, and retail. They believe that UID2 is not just a replacement, but a significant upgrade to cookies as a common currency of the open internet, creating a better experience for both consumers and advertisers.

Kg, both an extensive portfolio of publishing properties, including newspapers TV networks and retail they believe that <unk> is not just a replacement, but a significant upgrade to cookies as a common currency of the open internet, creating a better experience for both consumers and advertisers.

That was certainly the experience for Cocoa Village, a manufacturer and retailer of high-end children's toys and furniture servicing the North American market. They wanted to secure an easy way to leverage their valuable first-party CRM data to find new audiences for their products. Working with UID2, they were able to model new potential customer groups, drive incremental reach of almost 40%, and a return on ad spend of more than $1,000.

That was certainly the experience for cocoa village, a manufacturer and retailer of high end children's toys and furniture servicing in the North American market.

They wanted to secure and easy way to leverage their valuable first party CRM data to find new audiences for their products working with <unk>. They were able to modeled new potential customer groups drive incremental reach of almost 40%.

And our return on AD spend of more than 1000%. Additionally, we believe many of the same publishers that are signing up for open path.

Additionally, we believe many of the same publishers that are signing up for OpenPath will also sign up for UID2. We expect that these two products will both improve the open internet and will help to increase the adoption of the other.

I'll also sign up for <unk>, we expect that these two products will both improve the open internet and we will help to increase the adoption of the other.

In addition to publishers and advertisers who are adopting you ID to important industry trade groups are also weighing in with their support. Perhaps one of the most important groups is the MMA because they represent the voice of the brand marketer and their board comprises many of the world's leading CMO.

In addition to publishers and advertisers who are adopting USD two important industry trade groups are also weighing in with their support perhaps one of the most important groups as the MMA because they represent the voice of the brand marketer and their board comprises many of the world's leading CMO.

I was invited to join their board last year precisely because brand marketers want to be fully engaged in new approaches to identity and measurement.

The MMA views UID2 as a solution that can solve for the identity needs of the open internet. To quote their CEO Greg Stewart, correct.

MMA views <unk> as a solution that can solve for the identity needs of the open internet to quote their CEO , Greg Stewart correctly identity is the key to the future of marketing and especially important to marketers and taking full advantage of the larger reach and need for transparency to consumer concern.

Identity is the key to the future of marketing and especially important to marketers in taking full advantage of the larger reach and need for transparency to consumer consent that the open web affords. UID2 has a great potential to be a solution that the whole industry can work on collectively to craft a compliant and effective identity solution for everyone.

The open web affords <unk> has a great potential to be a solution that the whole industry can work on collectively to craft, a compliant and effective identity solution for everyone.

To finish, let me just summarize why I'm so bullish about 22 and our future. More than ever, the biggest brands in the world appreciate the value of data-driven advertising and increasingly, they are embracing our platform. I've spent time today talking about some of the more compelling recent drivers of that growing interest. And over the years, we have built trust with those advertisers and their agencies that we can deliver premium value to their campaigns.

To finish let me just summarize why I'm, so bullish about 'twenty, two and our future more than ever the biggest brands in the world appreciate the value of data driven advertising and increasingly they are embracing our platform I've spent time today talking about some of the more compelling recent drivers of that growing interest.

And over the years, we have built trust with those advertisers and their agencies that we can deliver premium value to their campaigns.

This business model is key in generating alpha in revenue and market share growth.

This business model is key in generating alpha and revenue and market share growth.

We continue to have customer retention rates above 95%.

Our engineering teams continue to lead the industry in innovation, charting new value opportunities for our advertising.

Our engineering teams continue to lead the industry in innovation charting new value opportunities for our advertisers.

As a result, we are one of the few high growth technology companies that consistently generate strong adjusted EBITDA and free cash.

As a result, we are one of the few high growth technology companies that consistently generate strong adjusted EBITDA and free cash flow.

Our profitability and positive cash generation allows us to make long-term investments that will ensure we continue to provide premium value. That includes Solomar, which is creating new value for advertisers by unleashing data and driving a greater return on ad spend, spinning the flywheel for advertiser campaigns.

Our profitability and positive cash generation allows us to make long term investments that will ensure we continue to provide premium value.

That includes solar Mar, which is creating new value for advertisers by unleashing data and driving a greater return on AD spend spinning the flywheel for advertiser campaigns.

It's driving our leadership in CTV, the fastest growing channel in digital advertising and a driver of new thinking across the marketing spectrum. It positions us to make a supply chain that is more efficient for investors and agencies in 2022 with initiatives like Open Path.

It's driving our leadership in CTV, the fastest growing channel in digital advertising and a driver of new thinking across the marketing spectrum and <unk>.

<unk> us to make our supply chain that is more efficient for our advertisers and agencies in 2022 with initiatives like open path.

It enables us to pioneer work in shopper marketing, $100 billion market. You'll see us forge partnerships with major retailers worldwide, including Walgreens. Just yesterday, they announced that advertisers will be able to leverage audience data services on our platform based on anonymized Walgreens shopper data.

It enables us to pioneer work in shopper marketing $100 billion market Youll.

Youll see us forge partnerships with major retailers worldwide, including Walgreens, just yesterday, they announced that advertisers will be able to leverage new audience data services on our platform based on Anonymised Walgreens shopper data.

It has also allowed us to become a leader in political advertising.

2022 will be an important midterm election year in the United States. We have spent years building an objective and independent platform open to registered candidates on all sides that can help drive discussions of substance in the political arena.

2022 will be an important midterm election year in the United States.

We have spent years building an objective and independent platform open to registered candidates on all sides that can help drive discussions of substance in the political arena.

In 2022, we will make meaningful progress with partners and industry bodies to make measurement better, especially for CTV and all digital spend outside the United States. Our profitability and free cash flow will also allow us to invest for global growth.

In 2022, we will make meaningful progress with partners and industry bodies to make measurement better, especially for CTV and all digital spend outside the United States.

Our profitability and free cash flow will also allow us to invest for global growth.

Two thirds of global advertising spend is outside the United States. This is a major focus for us. Once again, we saw strong growth in our international markets in the fourth quarter.

Two thirds of global advertising spend is outside the United States. This is a major focus for us once again, we saw strong growth in our international markets in the fourth quarter.

driven largely by CTV. In fact, our CTV share of spend more than doubled in Europe in the quarter. And we continue to open promising new markets such as Taiwan, India, Italy, and the Nordics with impressive leaders who are making very rapid inroads. We are a global company and we expect our international revenue to outpace North America over the long term because of the investments we're making in these markets.

Driven largely by CTV in fact, our CTV share of spend more than doubled in Europe in the quarter and we continue to open promising new markets, such as Taiwan, India, Italy, and the Nordics with impressive leaders, who are making very rapid inroads.

We are a global company and we expect our international revenue to outpace North America over the long term.

Cause of the investments, we're making in these markets.

We are very well positioned for 2022 and beyond. Our business has many growth drivers as we've discussed today.

We are very well positioned for 2022 and beyond our business has many growth drivers as we've discussed today.

And what I'm most excited about is the shift we're seeing among more and more senior brand market.

And what I'm. Most excited about is the shift we're seeing among more and more senior brand marketers and a variety of dimensions marketers are becoming more familiar and enthusiastic about programmatic advertising.

In a variety of dimensions, marketers are becoming more familiar and enthusiastic about programmatic advertising.

Whether it's the performance value of Solomar, the holy grail of retail data, the CTV revolution, or new supply path models, they understand the power of data-driven advertising to help them differentiate and drive growth in their businesses. And that's the most-

As the performance value of solar the Holy Grail of retail data, the CTV revolution, or new supply path model. They understand the power of data driven advertising to help them differentiate and drive growth in their businesses and that's the most rewarding thing of all I.

I could not be more excited about the opportunity in front of us and our growth prospects into 2022 and beyond.

And with that, I'll pass the baton to Blake, who will give you more color on the quarter.

And with that I'll pass the Baton to Blake, who will give you more color on the quarter.

Thank you, Jeff and good morning, everyone. We delivered strong results in the fourth quarter capping off a great year for our business Q4 revenue was $396 million or 24% increase from a year ago, excluding political spend related to the U S elections, which represented a high single digit percentage.

We delivered strong results in the fourth quarter, capping off a great year for our business.

Q4 revenue was $396 million, a 24% increase from a year ago. Excluding political spend related to the US election.

which represented a high single digit percentage share of our business in Q4 of 2020. Revenue increased approximately 36% year over year.

<unk> of our business in Q4 of 2020 revenue increased approximately 36% year over year that represented a slight acceleration from the prior year, which is impressive considering we experienced a strong recovery at the end of 2020.

That represented a slight acceleration from the prior year, which is impressive considering we experienced a strong recovery at the end of 2020.

For 2021, we ended the year with almost $6.2 billion in spend on our platform and nearly $1.2 billion in revenue, representing 43% year-over-year revenue growth.

For 2021, we ended the year with almost $6 2 billion in spend on our platform and nearly $1 2 billion in revenue representing 43% year over year revenue growth.

We also ended the year with adjusted EBITDA of just over 500 million and generated nearly 320 million in free cash flow in 2021.

We also ended the year with adjusted EBITDA of just over $500 million and generated nearly $320 million in free cash flow in 2021.

We are enthusiastic that the combination of our business strategy of being the default DSP for the open internet, where we only represent the buy side and avoid conflicts too often prevalent in our industry by those who own inventory, along with a proven business model that generates strong adjusted EBITDA and free cash flow is producing solid and consistent growth as we continue our progression towards a total addressable market of around one trillion.

We are enthusiastic that the combination of our business strategy.

The default DSP for the open Internet, where we only represent the buy side and avoid conflicts too often prevalent in our industry by those who own inventory along with a proven business model that generates strong adjusted EBITDA and free cash flow is producing solid and consistent growth as we continue our progression towards a total addressable.

<unk> of around $1 trillion.

We have been encouraged to see advertisers accelerate their shift to data-driven advertising in 2021. Our results reflect the ongoing strength of programmatic advertising and the value that the Trade Desk provides thousands of agencies and brands as they work to connect with their customers across our platform every day.

We have been encouraged to see advertisers accelerate their shift to data driven advertising in 2021.

Our results reflect the ongoing strength of programmatic advertising and the value that the trade desk provides thousands of agencies and brands as they work to connect with their customers across our platform every day.

For both the quarter and the full year, Connected TV continue to be our fastest growing channel at scale around the world. As Jeff mentioned, Solomar is now over 50% adoption, and we are seeing promising results as customers on average are utilizing Solomar to leverage more data elements than they did previously.

For both the quarter and the full year connected TV continued to be our fastest growing channel at scale around the world as Jeff mentioned <unk> is now over 50% adoption and we're seeing promising results as customers on average are utilizing solar March leverage more data elements when they did previously.

In Q4, our partnership with Walmart officially kicked off. UID2 had significant momentum. And as we have consistently stated, we have seen no material impact on our business from the iOS platform changes in 2021.

In Q4, our partnership with Walmart officially kicked off <unk> had significant momentum and as we have consistently stated we have seen no material impact on our business from the iOS platform changes in 2021.

In addition to the strong top-line performance in Q4, we generated $192 million in adjusted EBITDA, or about 48% of revenue. When we outperform on the top-line, we often see that outperformance drop down to EBITDA, which it did again in Q4.

In addition to the strong top line performance in Q4, we generated $192 million and adjusted EBITDA or about 48% of revenue when.

When we outperform on the topline, we often see that outperformance dropped down to EBITDA, which it did again in Q4.

EBITDA continued to benefit from temporarily lower than expected operating expense growth, partly driven by the continued virtual environment that we are still predominantly operating.

EBITDA continued to benefit from temporarily lower than expected operating expense growth, partly driven by the continued virtual environment that we are still predominantly operating in.

Even recognizing that, we are extremely proud of our continued ability to substantially grow our top-line revenue while also producing meaningfully positive EBITDA.

Even recognizing that we are extremely proud of our continued ability to substantially grow our topline revenue while also producing meaningfully positive EBITDA.

From a scaled channel perspective, CTV by a wide margin, let our growth again during the quarter. For Q4, video, which includes CTV and mobile, each represented the largest percentage share of spend. Display, which also grew very nicely in Q4, and audio end of the year representing about 15% and 5% of our business, respectively.

From a scaled channel perspective, CTV by a wide margin led our growth again during the quarter.

For Q4 video, which includes CTV and mobile east represented the largest percentage share of spend.

Display, which also grew very nicely in Q4, and audio ended the representing about 15% and 5% of our business respectively.

Geographically, North America represented 86% and International represented 14% of our business for the quarter.

Geographically North America represented 86% and international represented 14% of our business for the quarter.

Shanghai and Hong Kong drove spend growth at Northern APAC, and Australia and Singapore led our growth in Southern APAC. In terms of EMEA, our London and Paris offices led the way. CTV growth across EMEA was again quite strong in Q4, and still represents a fraction of the share of spend we see in North America.

<unk> high and Hong Kong drove spend growth that northern APAC in Australia, and Singapore led our growth in southern APAC.

In terms of EMEA, our London, and Paris offices led the way.

CTV growth across EMEA was again quite strong in Q4 and still represents a fraction of the share of spend we see in North America.

In terms of the verticals that represent at least 1% of our spend, nearly all of them exhibited healthy growth during the quarter. Shopping, which includes ecommerce, hobbies and interest in business were the strongest performers in Q4. We believe there is still the potential for share gain and improvement in most of our verticals.

In terms of the verticals that represent at least 1% of our spend nearly all of them exhibited healthy growth during the quarter shopping which includes ecommerce hobbies and interest in business were the strongest performers in Q4.

We believe there is still the potential for share gains and improvement in most of our verticals.

The law and politics vertical decelerated materially year over year in Q4, as expected, due to the comparison against the 2020 US election cycle.

The law and politics vertical decelerated materially year over year in Q4 as expected due to the comparison against the 2020 U S election cycle.

Operating expenses were 421 million in Q4, up 97% from a year ago. As expected, the growth in operating expenses during the quarter was driven primarily by stock-based compensation.

Operating expenses were $421 million in Q4 up 97% from a year ago as expected the growth in operating expenses. During the quarter was driven primarily by stock based compensation, specifically $158 million in stock based compensation expense related to a long term CEO per <unk>.

specifically $158 million in stock-based compensation expense related to a long-term CEO performance award that was recorded in GNX.

This award that was recorded in G&A expense.

The $158 million expense included a tranche of the grant that accelerated based on stock price achievement and relative benchmark performance thresholds during Q4.

The $158 million expense included a tranche of the granted accelerated based on stock price achievement and relative benchmark performance thresholds during Q4 in.

In Q4, excluding stock-based compensation, operating expenses were $216 million, up 23% year-over-year. For the full year, we gained significant operating leverage in both our platform operations and G&A areas as we scaled the business and improved our efficiency.

In Q4, excluding stock based compensation operating expenses were $216 million up 23% year over year for the full year, we gained significant operating leverage in both our platform operations and G&A areas as we scaled the business and improved our efficiency.

Income tax was a benefit of 35 million in the quarter, mainly due to the tax benefits associated with employee stock-based awards, the timing of which can be variable.

Income tax was a benefit of $35 million in the quarter, mainly due to the tax benefits associated with employee stock based awards, the timing of which can be variable.

Adjusted net income for the quarter was $208 million or $0.42 per fully diluted share.

Adjusted net income for the quarter was $208 million or <unk> 42 per fully diluted share.

Net cash provided by operating activities was $163 million and free cash flow was $151 million in Q4. The strong cash generation during the quarter was driven predominantly by our operating...

Net cash provided by operating activities was $163 million and free cash flow was $151 million in Q4 the.

The strong cash generation during the quarter was driven predominantly by our operating results I would like to remind you that the timing of cash collections and payments can significantly impact cash from operating activities and free cash flow results on a quarterly basis.

I would like to remind you that the timing of cash collections and payments can significantly impact cash from operating activities and free cash flow results on a quarterly basis.

DSOs exiting Q4 were 107 days, down 14 days from a year ago. DPOs were 91 days, down 10 days from a year ago.

Dsos exiting Q4 were 107 days down 14 days from a year ago.

<unk> hundred 91 days down 10 days from a year ago.

We exited Q4 with a strong cash and liquidity position. Our balance sheet had 959 million in cash, cash equivalents, and short-term investments at the end of the quarter. We have no debt on the balance sheet.

We exited Q4 with a strong cash and liquidity position, our balance sheet had $959 million in cash cash equivalents and short term investments at the end of the quarter, we have no debt on the balance sheet.

Turning now to our outlook. The year has started out strong, and we estimate Q1 revenue to be at least $303 million, which would represent growth of 38% on a year-over-year basis, which is a slight acceleration over the prior year. We estimate adjusted EBITDA to be approximately $91 million in Q1.

Turning now to our outlook. The year has started out strong and we estimate Q1 revenue to be at least $303 million, which would represent growth of 38% on a year over year basis, which is a slight acceleration over the prior year, we estimate adjusted EBITDA to be approximately $91 million in Q1.

Turning now to expenses. In 2022, we anticipate our stock-based compensation to rise from our normal run rate. This is being driven by approximately $265 million of stock-based compensation expense we expect to include in 2022 related to the long-term CEO performance award.

Turning now to expenses in 2022, we anticipate our stock based compensation to rise from our normal run rate. This is being driven by approximately $265 million of stock based compensation expense. We expect to include in 2022 related to the long term CEO performance award at the end of 2021 the pro.

At the end of 2021, the performance award had $616 million in unrecognized stock-based compensation, which is expected to be included in our G&A expense over approximately four years, but could be accelerated if the threshold criteria is met earlier than expected.

Formats Award had $616 million in unrecognized stock based compensation, which is expected to be included in our G&A expense over approximately four years, but could be accelerated if the threshold criteria is met earlier than expected.

The total amount expensed is unrelated to whether any of the performance award thresholds are ever met. Only shares that have met the threshold criteria outlined in the performance plan are factored into our total shares outstanding.

Total amount of expenses unrelated to whether any of the performance award thresholds are ever met only shares that have met the threshold criteria outlined in the performance plan are factored into our total shares outstanding.

Excluding the performance grant for 2022, we expect total operating expense growth to increase on a year-over-year basis.

Excluding the performance grants for 2022, we expect total operating expense growth to increase on a year over year basis.

Considering our ability to generate strong EBITDA and cash flow, we see significant opportunities to invest in our business with a massive available market in front of us that can generate long term growth. Such as the generational shift to connect to TV, the expanding retail data opportunity, and the expectation that our international operations will grow faster than North America over the long term.

<unk>, our ability to generate strong EBITDA and cash flow, we see significant opportunities to invest in our business with a massive available market in front of us that can generate long term growth such as the generational shift to connected TV, the expanding retail data opportunity and the expectation that our international operations will grow faster than north.

Over the long term.

To help take advantage of those opportunities, we expect to increase our rate of hiring over pandemic-affected periods and will do so in a competitive hiring market. We also expect that return-to-work expenses will begin to revert to pre-pandemic levels, including live events, travel, and other related activities.

To help take advantage of those opportunities, we expect to increase our rate of hiring over pandemic affected periods and we will do so in a competitive hiring market.

We also expect the return to work expenses will begin to revert to pre pandemic levels, including live events travel and other related activities.

Understanding all of that, we do expect the operating expense structure of the company to be better than it was prior to the pandemic and over the long term expect sales and marketing and technology and development areas to represent a larger share of our investment. We are proud of the fact that we are one of a few high-growth technology companies that can consistently generate strong adjusted EBITDA and pre-cash.

Understanding all of that we do expect the operating expense structure of the company to be better than it was prior to the pandemic and over the long term expect sales and marketing and technology and development areas to represent a larger share of our investment. We're proud of the fact that we are one of a few high growth technology companies that can consistently.

<unk> strong adjusted EBITDA and free cash flow.

We expect 2022 capital expenditures and capitalized software investments to be at least $75 million. We expect data center and infrastructure spend to drive the majority of the growth year over year and represent a larger share of our expenditures relative to office facilities compared to the prior year.

We expect 2022 capital expenditures and capitalized software investments to be at least $75 million, we expect data center and infrastructure spend to drive the majority of the growth year over year and represent a larger share of our expenditures relative to office facilities compared to the prior year.

And finally, with regards to tax, absent any changes to US tax laws, we expect our full year 2022 tax rate to be about 25%.

And finally with regards to tax absent any changes to U S tax laws, we expect our full year 2022 tax rate to be about 25%.

This is obviously impacted by any tax benefits associated with employee stock based awards, the timing of which can be very.

This is obviously impacted by any tax benefits associated with employee stock based awards, the timing of which can be variable.

In closing, we are pleased with the momentum of our business and the strong start to the year. We are highly optimistic about the long-term prospects for our business in 2022 and beyond.

In closing we are pleased with the momentum of our business and the strong start to the year. We are highly optimistic about the long term prospects for our business in 2022 and beyond.

With large growth drivers such as CTV, our international business, our retail data opportunity that just kicked off in Q4 with the Walmart DSP, the 2022 midterm elections in the US, and our recent platform upgrade in Solomar. I believe we have significant opportunities to grow our business.

With large growth drivers such as CTV, our international business, our retail data opportunity that just kicked off in Q4 with the Walmart DSP. The 2022 midterm elections in the U S and our recent platform upgrade and solar Maher I believe we have significant opportunities to grow our business. In addition, we are in a position to <unk>.

In addition, we are in a position to drive not only long-term growth, but also to scale our business efficiently and continue to improve in the years to come.

<unk> not only long term growth, but also to scale our business efficiently and continue to improve in the years to come.

That concludes our prepared remarks. And with that operator, let's open up the call for questions.

That concludes our prepared remarks, and with that operator, let's open up the call for questions.

Certainly. Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, please press star 1 on your phone at this time. We do ask that while posing a question, please pick up your handset, if you're listening on speakerphone to provide optimum sound quality.

Certainly ladies and gentlemen, the floor is now open for questions. If you have any questions or comments. Please press star one on your phone at this time.

We do ask that while posing a question. Please pickup your handset if you're listening on speaker phone to provide optimum sound quality.

Once again, if you have any questions or comments, please press star 1 on your phone. Please hold while you poll for questions.

Once again, if you have any questions or comments. Please press star one on your phone.

These hold while we poll for questions.

Your first question is coming from Shyam Patil from Susquehanna. Your line is live.

Your first question is coming from Sean Patil from Susquehanna. Your line is live.

Hey guys, congrats on the fourth quarter results and the strong outlook.

Hey, guys congrats on the fourth quarter results and the strong outlook.

I just had one question. Jeff, you know, there was some news out this morning. I was hoping you'd comment on, you know, just, you know, curious for your initial thoughts on the Android news. And just what kind of impact do you see for the Trade Desk and the industry? Thank you.

I've got one question Jeff.

Yes, there is some news out this morning, I was hoping you can comment on.

<unk>.

Just curious for your initial thoughts on the Android news.

And just what kind of impact do you see for the trade desk and the industry. Thank you.

You bet. Well, first of all, thanks for the kind words. I'm incredibly proud of the team. I'm proud of what we accomplished in 2021, and especially just an amazingly strong finish in Q4. And then I'm just equally encouraged by the momentum so far this year. So I.

You bet.

First of all thanks, Shawn for the for the kind words.

Incredibly proud of the team I am proud of what we accomplished in 2021, and especially just an amazingly strong finish.

Q4, and then.

I would just equally encouraged by the momentum.

So far this year so.

Sure.

Yeah.

I just want to really underline that because I do think that there's a lot of discussion including much of my morning was just reading about Google's announcement, and I will just say I'm incredibly encouraged By the way, this is rolling out so first I don't believe that this will have a negative impact on our business And I think it has a good chance of having a positive impact on our business.

By the way this is rolling out so first I don't believe that this will have a negative impact on our business and I think it has a good chance of having a positive impact on our business.

So in order to understand that though, of course, you just have to acknowledge that Google is getting hit from all sides as it relates to antitrust scrutiny as well as privacy.

So in order to understand that though of course, we would just have to acknowledge that Google is getting hit from all sides as it relates to the antitrust scrutiny as well as privacy scrutiny.

So this move by Google is not a surprise. It's not like Android could just sit around and be the only platform not to pull back on implicit data sharing. But they created an amazing transition period, which I think is very good for the industry and something that they've learned from, I would say, Apple's mistake on this. And their rhetoric is really focused on improving the internet. And a lot of things that they're saying now are different than things that they've said in the past.

This move by Google is not a surprise its not like Android could just sit around and be the only platform not to pull back on implicit data sharing but.

<unk> created an amazing transition period, which I think is very good for the industry and something that they've learned from I would say apples mistake on this.

And the rhetoric is really focused on improving the internet and a lot of things that theyre, saying now are different than things that as I have said in the past.

So from our perspective we say bring on the explicit opt-in future.

So from our perspective, we say bring explicit opt in future.

When the UID is present and we get an opt-in, great. And when we don't, we'll do modeling and we're going to be fine no matter what.

When the new idea is present and we got an often great and.

And when we don't we'll do modeling and we're going to be fine no matter what.

I'll also just note that Google has recently of course tested flock and topics and neither have gone very well. And they haven't been very, received very well in the antitrust discussion.

I will also just note that Google has recently of course tested floor and topics.

Neither has gone very well and they haven't been very received.

We received very well in the <unk>.

I Trust discussions in particular, but also and especially Fox case, and the privacy discussions so I'm really encouraged by Google pressing the point that they are committed to treating themselves equally as per their agreements with regulators.

but also in especially Flop's case in the privacy discussion.

So I'm really encouraged by Google pressing the point that they are committed to treating themselves equally as per their agreements with regulators.

In other words, foundationally, Google needs targeted advertising. And as a result, that makes them a good partner of ours in this fight to just get things right between that balance of the quid pro quo of the internet.

In other words foundation foundational a Google needs targeted advertising.

And as a result that makes them a good partner of ours in this fight to just get things right between that balance of a quick profile of the internet.

Sure.

As it relates to mobile specifically, mobile device IDs are of course relevant to in-app advertising, but that isn't all of mobile.

As it relates to mobile specifically mobile device Ids are of course relevant to in App advertising, but that isn't all of mobile.

So just important note there. And then Facebook and others have to monetize every impression, and most of those impressions are mobile. But we look at all the ad opportunities and choose the ones that are best. So I always use an example. It's not uncommon for a Fortune 500 company to be looking at 10 million 2PS via our platform, and then they select the 1,250 that are the best for them.

Just important out there and then.

He spoke and others have to monetize every impression and most of those impressions are mobile, but we look at all the opportunities and choose the ones that are best So I always use as an example.

Common for a fortune 500 company to be looking at $10 million GPS via our platform and then they select the 1250 that are the best for them.

If that denominator changes a little bit, if it moves from 11 million to 10 million, then they just choose a different set of impressions.

That denominator changes a little bit if it moves from 11 million to $10 million.

Just choose.

Arent set of impressions.

But I've used that before. In this case, that isn't actually the right way to think about this one. We're actually still getting the 11 million QPS. They're just slightly less appealing because of perhaps less metadata.

But I've used that before in this case that isn't absolutely the right way to think about this one were actually still getting the $11 million GPS.

Slightly less appealing.

<unk>.

Perhaps less meta data.

So we're still going to get to choose and it doesn't really change our value proposition at all. It does perhaps shift some dollars to impressions that just have more metadata, most notably into CTV. But if I'm Google, and I just want to encourage everybody to think about this for a second, and I have to respond to all these pressures from all these different areas, I actually want to see things like UID2 succeed.

So we're still going to get to choose and it doesn't really change our value proposition at all it does perhaps shifted some dollars.

<unk> impressions that just have more meta data most notably in CTV.

But if I am Google and I, just want to encourage everybody to think about this for a second and I have to respond to all of these pressures from all these different areas I actually want to see things like <unk> to succeed.

But I'm under way too much scrutiny to endorse it, or especially to propose it myself.

But I'm under way too much scrutiny to endorse it.

Especially to propose it myself.

but I want to see it succeed. So in other words, I can't carry the ball, but I can block. To me, what they did today.

But I want to see it succeed so in other words I can't carry the ball, but I can block to me what they did today as they are blocking.

This is an amazing setup for UID2 and it makes CPB advertising even more appealing. Everything in CPB has a login and that login is controlled by the content owner.

This is an amazing set up for <unk> and it makes CTV advertising advertising, even more appealing everything that CTV has a login and that login is controlled by the content owners and those content owners none of them have a monopoly.

And those content owners, none of them have a monopoly, and none of them own a sizable OS. So the login makes personalization...

One of them.

A sizable OLS.

So the lager mix personalization up to the content owners.

Lastly, related to this, Apple is doing more and more non-ad personalization using their Apple ID. I think this is indicative of the future. It's an opt-in future with clear consent to provide personalization perpetuating the very amazing quid pro quo of the open internet. To me, that sounds a lot like what we've been after from the very beginning. Like we said, bring on the explicit opt-in future.

Lastly related to that Apple is doing more and more non AD personalization using their apple IV.

I think this is indicative of the future, it's an opt in future with clear consent to provide personalization perpetuating the very amazing quid pro quo of the open Internet and to me that sounds a lot like what we've been after from the very beginning so like we said bring an explicit opt in future.

Thanks, Tom.

Thank you. Your next question is coming from Basilee Karajov from Cannonball Research. Your line is live.

Thank you. Your next question is coming from <unk> <unk> from Cannonball Research Your line is live.

Thank you very much. Jeff, I wanted to follow up on your comments on shopper marketing.

Oh, Thank you very much Jeff I wanted to follow up on your comments on the sharper marketing. So can you give us more details about how Walmart the launch ramp in Q4, and the where your relationship with Walmart is going this year it might be.

So can you give us more details about how Walmart launch went in Q4 and where your relationship with Walmart is going this year maybe?

in the future and also Walgreens announcement yesterday. How different is that from what you're doing with Walmart? And are you talking to other retailers and if you are, what kind of pushback or gating factors are you seeing there?

The in the future and also Walgreens announcement yesterday, how different is that from what you're doing with Walmart and are you talking to other retailers and if you are what kind of pushback are gating factors are you seeing that.

So first, Walmart has been a fantastic partner. We are working very closely to just pioneer new thinking about retailer and brand relationships and of course, shopper marketing and retail data.

You bet. Thanks, So first.

Walmart has been a fantastic partner.

We are working very closely to pioneer.

New thinking about retailer and brand relationships and of course shopper marketing and retail data.

As you know, we launched in Q4. It was really test-based.

As you know we launched in Q4, it was really test phase.

where we had roughly 20 large brands that were running on Walmart's VSP, of course powered on our platform. We are continuing to just partner with more and more retailers. Most notably, we just announced yesterday our partnership with Walgreens where they are launching their own self-service and clean room solutions on our platform.

Where we have roughly 20 large brands that we're running.

Walmart DSP.

Of course power on our platform.

We are continuing to just partner with more and more retailers, most notably we just announced yesterday our partnership with Walgreens.

Where they are launching.

Their own self service and clean room solutions on our platform.

So I want to emphasize the shop for marketing TAM is at least $100 billion. You know, we have a lot of discussion about antitrust these days and I don't think there's much antitrust.

So.

I want to emphasize the shopper marketing Tam is at least 100 billion.

A lot of discussion about antitrust these days.

I don't think theres much anti trust.

The.

reasoning to be in retail because of how fragmented and how many opportunities there are in that space. Of course, we're talking to many of them and it's just a reminder of really what closing the loop, the value of that sort of holy grail of retail data is about closing the loop.

Reasoning to be in retail because of how fragmented and how many opportunities. There are in that space of course, we're talking to many of them and it's just a.

A reminder of <unk>.

Really what closing the loop the value of the sort of Holy Grail of retail data is about closing the loop.

So, you know, we read a lot about just

No.

We read a lot about.

measurement being affected in Facebook's earnings.

Measurement being.

Effective and Facebooks earnings.

But that is very different in a world where you have data at the time of conversion.

But that is very different in a world where you have data at the time of conversion and so to me like all the landscape changes that have happened in the last few months are just actually pointing to the need for these retail partnerships as well as.

And so to me, all the landscape changes that have happened in the last few months are just actually pointing to the need for these retail partnerships, as well as the strategies that we're seeing deployed by many of the biggest retailers in the world. So we're very encouraged by it. We expect more partnerships to come.

The strategies that we are seeing deployed by many of the biggest retailers in the world. So.

Very encouraged by what we expect more partnerships to come and we expect retail and shopper marketing to continue to grow.

and we expect retail and shopper marketing to continue to grow, so 22 is going to be an amazing year for that growing up.

'twenty two is going to be an amazing year.

For that.

Growing up.

Thank you.

Thank you. Your next question is coming from Justin Patterson from KeyBank. Your line is live.

Thank you. Your next question is coming from Justin Patterson from Keybanc. Your line is live.

Great, thank you very much. Jeff, could you please expand on why OpenPath is a threat to the SSPs, as well as just the significance of dropping Google's open bidding? And then for Trade Desk specifically, how should we think about the potential benefit to spend in unit economics on the platform from this type of initiative, particularly as it starts to pair up with a unified ID too? Thank you so much.

Great. Thank you very much.

Could you. Please expand on why open path isn't a threat to the SSP as well as just the significance of dropping two goals opened bidding and then for <unk>, specifically, how should we think about the potential benefit to spend and unit economics on the platform from this type of initiative, particularly as it starts to pair up with Baidu.

<unk>. Thank you so much you bet.

So let me first start by explaining what open bidding is, and then I'll talk about what open path is, because there's two separate strategic moves that were made on the same day. So earlier this week, we announced that we were doing these two things, the first of which was that we were no longer going to bid or participate in open bidding, or Google's alternative to header.

So let me first start by explaining that.

What open bidding is and then I'll talk about what open path is because there's two separate strategic moves that were made.

On the same day so.

Earlier this week, we announced.

That.

We were doing these two things the first of which was that we were no longer going to bid or participate in an open bidding or google's alternative to header bidding.

Many of you who have been involved with us for a while remember that the advent of header bidding was one of the best things that ever happened to us as a company and one of the best things that happened to the open internet. What header bidding did is it made the market more competitive and it took the publisher decisioning of which ad to show away from Google and put it into this open source header technology. It's called header bidding because it's code that just gets placed in the header tag of a web.

Many of you have been involved with us for a while remember that the advent of header bidding was one of the best thing that ever happened to us as a company and one of the best things that happened in the open Internet what header bidding did is it made the market more competitive and it took the publisher Decisioning, which ads to show.

Away from Google and put it into the open source header technology, that's called header bidding because thats code that just took place in the head or tax of a webpage.

But Google created OB as a response to it and it definitely had a positive effect for Google. But we don't believe that it created a level playing field. It certainly favored some parties over others. If you read that Texas Attorney General's complaint and you read about Jedi Blue and some of the allegations there, those are all related to open video..

But Google created Ob as a response to it.

<unk> had a positive effect for Google, but we don't believe that it created a level playing field certainly favor some parties over others.

You read that Texas.

I'll turn it general complaint.

You've read about Jedi blue and some of the.

Allegations there those are all related to open meeting.

So naturally we wanted to turn that off knowing that nearly every publisher in there has another path to that inventory so we don't lose out on any of the inventory. We just buy it towards paths that are a little bit more transparent and more fair, which we think is good for our advertisers and good for everybody else. So the only people that it's not good for are those that were benefiting unfairly or wouldn't compete and wouldn't be able to compete.

So naturally we wanted to turn that off knowing that nearly every publisher and there has another path to that inventory. So we don't lose out on any of the inventory, which is biased towards pads that are a little bit more transparent.

And more fair.

Which we think is good for our advertisers and good for everybody else. So the only people that it's not good for those that were benefiting unfairly wouldn't compete.

And I wouldn't be able to compete in a fair marketplace.

So as a result, we also decided to launch OpenPAD, which basically gives publishers the ability to integrate with us directly. Now I just want to be emphatically clear here, this is not us getting into the SSP business. At the core, an SSP is providing yield management, trying to give publishers the highest yield possible, and they typically are trying to manage a large chunk of their inventory.

As a result, we also decided to launch open path, which basically gives publishers the ability to integrate with us directly. So I just want to be emphatically clear here. This is not us getting into the SSP business at.

At the core and SSP is providing yield management tied to give publishers the highest yield possible and they typically are trying to manage.

Large chunk of their inventory instead, what we're doing is we're enabling them to integrate with us directly so in the cases, where we want to bid.

Instead what we're doing is we're enabling them to integrate with us directly. So in the cases where we want to bid, they will get that bid directly to them and then they can compare that to their other sources of demand. So that they can do their own yield management.

I will get that bid directly to them and then they can compare that to their other sources of demand. So that they can do their own yield management.

We expect this will often be the case with very large publishers, and we think this will have a very positive effect on the state of the supply chain in both CTV and especially in journalism.

This will often be the case with very large publishers and we think that we will have a very positive effect on the state of the supply chain in both CTV and especially in journalism.

We wanted to start with journalism because that was the one most effective by header bidding for the positive, and in some ways most negatively affected by all the changes that have happened in the supply chain and the fights that's happening over identity.

Wanted to start with journalism, because that was the one most effected by header bidding for the positive.

In some ways most negatively affected by all the changes that have happened.

The supply chain and the fight that's happening over identity.

Meanwhile, there's all of these journalistic outlets that are trying to monetize as optimally as possible and with all these views over identity, including many of which that are dependent on mobile apps, they need high CPMs to just stay in business.

While all of these journalistic outlets that are trying to monetize as optimally as possible and with all of these skus over identity, including many of which that are dependent on mobile apps. They need high CPM to just stay in business.

So we're so excited that what this represents at launch is 70% of the newspaper readership in the United States.

We're so excited about what this represents at launch is 70% of the newspaper readership in the United States.

between Reuters, Washington Post, USA Today, Hearst, Conde Nast, Tribune, and just many, many others.

Between Reuters, Washington Post USA today, Hertz, Totnes Tribune, and just many many others.

We think this represents just a huge lifeline to the journalistic community.

We think this represents a huge lifeline.

Elisa community I do want to just underlying one more time.

I do want to just underline one more time, there is nothing more important to us than preserving our objectivity.

Nothing more important to us in preserving our objectives.

That means that we're in this for the buyer. We're representing advertisers and agencies in the decisions that we make. That will continue. We're just willing to transmit that bid directly to the content owner when it's possible and when they want that. And as a result, we think that creates a more effective supply chain and gives more momentum to the open internet that is largely being fueled by the connection.

That means that we're in this for the buyer.

Representing advertisers and agencies in the decisions that we make that will continue.

Willing to transmit that bid directly to the content owner.

When it is possible and when they want that.

And as a result, we think that creates a more effective supply chain and gives us more momentum to the open internet that is largely being fueled by the connected TV.

Thank you. Your next question is coming from Ten Nolan from Macquarie. Your line is live.

Thank you. Your next question is coming from Tim Nolan from Macquarie. Your line is live.

Thanks very much. I'd like to turn back to the CTV topic if I could Jeff you mentioned the upfront markets coming up

Thanks, very much I'd like to turn back to the CTV topics, if I could Jeff.

You mentioned, the upfront markets coming up and your role in the digital upfront I Wonder if you could talk a bit more about maybe the upfront in general I think it's not just digital and sort of what youre doing with the with the network groups and the agencies and that process related Leigh could you address the availability of that impressions in CTV, which I guess have fluctuated over the year.

and your role in the digital up-fronts. I wonder if you could talk a bit more about maybe the up-fronts in general. I think it's not just digital and sort of what you're doing with the network groups and the agencies in that process. Relatedly, could you address the availability of that impressions in CTV, which I guess have fluctuated over the years from being in short supply to being more plentiful? Maybe what is the current state overall and within all of these...

Ours from being in short supply to being more plentiful maybe what is the current state overall and within all of these.

these OTT services that you're servicing. And then lastly, if I could just tuck one in relatedly as well, you mentioned measurement for CTV. Any more color you could give us on your efforts in helping measure CTV more effectively would be great.

These these OTT services that Youre servicing and then lastly, if I could just tuck one unrelatedly as well you mentioned measurement for CTV any more color you could give us on your efforts in helping measure CTV more effectively would be great. Thanks.

You bet. So first, I'll just say I've never been more bullish on TTV than we are right now. And that's in large part because of all of our partnerships with the content owners. And again, just...

You bet so.

First I'll, just say I've never been more bullish on CTV then than we are right now and that's in large part because of all of our partnerships.

With the content owners.

And again just.

as we've integrated with them directly more and more as time has gone on. And as we've seen them grow, as we've seen them test.

As we've integrated with them directly more and more as time has gone on and as we've seen them grow.

As we've seen them test.

AVOD, SVOD, and hybrid models, we're seeing more and more a move towards AVOD. And that speaks to your, I think the third part of your question, which is about what's happening to inventory. You know, it started out that most of us did our consuming on, and I'm speaking as a consumer for a minute, most of us did our consumption.

As Bob and hybrid models.

Seeing more and more a move towards a bot.

That speaks to your I think the third part of your question, which is about.

What's happening to inventory.

It started out that most of us that are consuming.

And I'm speaking as a consumer for a minute most of us get our consumption.

on Amazon and Netflix, that's why I operate.

Amazon and Netflix.

<unk> offerings.

And then over time we were introduced to things like Hulu and now so many others that are AVOD or hybrid like in Hulu's case.

And then over time, we were introduced to.

Things like Hulu now so many others.

R R.

Or hybrid.

Two of those cases.

And as we've learned from so many of them, it's often a better way for them to monetize, to be an ABOB company. And it also is what the consumer typically prefers. As in Hulu's case, 80% of consumers prefer the ad.

And as we've learned from so many of them.

Often a better way for them to monetize to be an Eva company and it also is what the consumer typically prefers.

Hulu is case, 80% of consumers prefer the ads.

Now some of that has been a phenomenon for many years, but that predates what I'll describe as what is now peaking, which is subscription...

No.

Some of that has been a phenomenon for many years, but that pre date, what I'll describe as well.

Now, peaking which is subscription fatigue.

And so that was true at Hulu many years ago. It's still it's even more true today, but because of course there's more subscriptions, it takes more work to figure out where to watch. But you want to watch it is. And for the average American household to be paying for 15 subscription.

So that was true of many years ago, it's still it's even more true today, but because of course, there's more subscriptions.

More work to figure out where to watch, but you want to watch is.

For the average American household to be paying for 15 subscription instead of two or three that they were a few years ago.

instead of two or three that they were a few years ago, the cost is prohibitive. So insert AVOS. And now all of those companies are graded on subscribers. How many subscribers do they get? And just some pretty impressive numbers across the board.

The cost is prohibited.

Insert Avon and now all of those companies are great at.

Subscribers, how many subscribers do they get.

Just some pretty impressive numbers across the board.

And many of them as we've watched.

from many of them as we've watched how they reported on their last year.

They reported on their last year.

But in order for them to keep those subscribers, they have to make it affordable.

But in order for them to keep those subscribers they have to make it affordable.

So we expect to see more and more of them adopting advertising. They need that to be relevant so that they show fewer ads that are more relevant to the user so that they keep an amazing experience for the consumer. But then the consumer can also afford it. So I believe strongly that the most promising part of our future is in CTD because of those market dynamics. Now to the last part of your question.

We expect to see more and more of them adopting.

Advertising they need that to be relevant so that they show a fewer ads that are more relevant to the user so that they keep an amazing experience for the consumer.

But then the consumer can also afford it.

So I believe strongly.

Excuse me that the most promising part of our future is in CTV because of those.

Dynamics.

Nonetheless part of your question about upfront.

Basically, for those of you that are unaware of the upfront process, what used to happen is everybody would come together at certain seasons of the year to buy all the ads on an upfront basis and you would try to bet on the shows that you thought were going to be successful. And the model was really built before there was anything digital and when there weren't that many content coming. So, once again, my name is DanBen and this is my fun video series about 2 minutes on a & eye Korean life I live in.

Basically for those of you that are unaware upfront process.

Used to happen as everybody would come together.

At certain seasons of the year to buy all the adds on an upfront basis and you would try to bet on the shows that you thought were going to be successful.

The model was really.

Bill before there was anything digital and when there weren't that many content company.

But nevertheless, there still is this desire to go to an event or an upfront event.

But nevertheless, there still is this desire.

To go to.

Events are upfront.

schedule and get some sense of plan for the rest of the year and get some sense of inventory and to make commitments where sometimes big advertisers can use their size to get a better deal if you will and then publishers are willing to trade that better deal for assurances that they're going to get spent.

Schedule.

Get some set the plan for the rest of the year and get some sense of inventory to make commitments, where sometimes a big advertisers can use their size.

To get a better deal. If you will and then publishers are willing to trade that better deal for assurances that theyre going to get spent.

But what's increasingly brought into the equation is the need for audience and data. And that's not really conducive to just signing an insertion order or a contract that sells all the inventory to one company. You need to put your audience data to work. You need real-time decisioning. You don't really know who's going to be watching, what the characteristics are. And so as a result, more and more of those upfront discussions are bringing us into the middle between those two entities.

But what's increasingly brought into the equation is the need.

Our audience and data and Thats not really conducive to just signing an insertion order or a contract that says all the inventory to one company you need to put your audience data to work you need real time Decisioning is you don't really know who is going to be watching what the characteristics are and so as a result, more and more of those upfront discussions.

Are bringing us into the middle between those two entities. So that we can enable better decisioning and higher CPM for the publisher and of course better decisions for.

so that we can enable better decisioning and higher CPM.

for the publisher and of course better decisions for the advertiser.

For the advertisers.

So we're very encouraged by the invitation to the up-fronts, by the type of deals that are being struck, and by how often audience and full data decisioning is now being brought into up-front discussions, which we believe are going to transform the up-fronts over the next few years.

So we're very encouraged by the end of patients to the upfront by the type of deals that are being struck.

By how often audience and full data Decisioning is now being brought into upfront discussions, which we believe are going to transform the upfronts and years over the next few years.

But that's all good news for us, that's good news for decisioning, that's good news for CPM, and that's good news for the TV landscape, which is getting more and more competitive and gravitating more and more towards A-box.

But that's all good news for US is good news for Decisioning. That's good news for CPM. So that's good news for the for the TV landscape, which is getting more and more competitive and gravitating more and more towards de Boer.

Thanks, Tim.

Thank you. Your next question is coming from Yousif Squali from Truist Securities. Your line is live.

Thank you. Your next question is coming from Youssef Squali from true Securities. Your line is live.

Thank you very much. Jeff, congrats on the consistent performance. Two questions please. For Unified ID 2.0, you're clearly getting a lot of adoption within agencies, within streaming media networks, etc. Can you maybe speak to adoption within the large advertiser base? Maybe anything to share in terms of adoption within the top 100.

It very much.

Congrats on the consistent performance two questions. Please for unified I'd to that how you are clearly getting a lot of adoption within agencies within streaming media networks et cetera could you maybe speak to adoption within the largest advertiser base, maybe anything to share in terms of adoption within the top 100.

Can you give maybe examples of how they're actually using it? And on Solomar, thanks for some of the metrics you shared, but can you maybe share some additional color on any learnings from the upgrade in terms of the customer experience and maybe the lift in spend relative to either the previous platform you had or even relative to your expectations?

Can you give me maybe examples of how they're actually using it and solid Maher.

For the.

Some of the metrics you shared but can you maybe share some additional color on.

Any learnings from the upgrade in terms of the customer experience and maybe the lift in spend relative to either the previous platform you had or even relative to your expectations.

Thank you, Beth. So first of all, thanks for the question. Excited to talk on both of these topics. So first, I was prepared to answer a question like this by saying something like, as I look back on last year, I don't think the momentum could have been any better. But now that I look at today's announcement from...

You bet. So first of all thanks for the question excited to talk on both of these topics. So first.

No.

I was prepared to answer a question like this by saying something Mike as I look back on last year I don't think the momentum could have been any better but now that I look at today's announcement from from from Google.

I expect this to help our momentum. So when I say momentum, it couldn't have been any better, given all the macro environment, it couldn't have been any better then, but it's gonna be even better now.

I expect that to help our momentum so when I say momentum couldn't have been any better given all of the macro environment kind of it any better than but it's going to be even better now.

So, you know, our January avails with UIDs present reached an all-time high in January . We continue to grow rapidly outside the United States and we're just partnering all over.

So.

Our January .

Avails with Usg's present reached an all time high in January we continue to grow rapidly outside the United States.

And we're just partnering all over the place.

with those that create infrastructure for the Internet.

With those that create infrastructure for the internet. So many people adult I think properly understand our value. The partnerships that we have when we partner with companies like <unk> or a snowflake that are providing infrastructure from the internet.

So many people don't, I think, properly understand or value the partnerships that we have when we partner with companies like a LibRamp or a Snowflake that are providing infrastructure for the internet.

Many of the largest advertisers on our platform are now transacting on UID or are in the process of implementing. Solomar does make that much, much easier to implement. And OpenPath will have a huge impact on just accelerating UID as well. Because as we integrate directly with many of the publishers, of course the SDK will include both capabilities and some amount of encouragement.

Many of the largest advertisers on our platform are now transacting on USD four are in the process of implementing some of our does make that much much easier to implement an open path will have a huge impact just accelerating UAE as well because as we integrate directly with many of the publishers.

Of course.

That.

SDK will include.

Both capabilities.

And some amount of encouragement.

to of course implement UID so that we can provide more data driven advertising that provides higher CCM.

Of course implement UAV, so that we can.

Ill.

Provide more data driven advertising that provides higher CPM.

We're seeing significant increases around the world, maybe most notably in APAC, but the numbers are just...

Where we're seeing significant increases around the world maybe most notably.

In APAC, but the numbers are just.

very impressive at this point. We're on over billions of devices. So with the footprint that we have today, we're incredibly encouraged. And then with...

Very impressive at this point.

Over billions of devices.

So with.

With the footprint that we have today.

We're incredibly encouraged and then with the.

sort of other external pressures on other players and the discussion on privacy and antitrust. Those are actually creating secular tailwinds for UID.

It's sort of other external pressures.

On other players in the discussion on privacy antitrust those are actually creating secular tailwind for you I need to.

As it relates to Solomar, amazing attraction as well. I'd hope...

As it relates to solve our amazing traction as well.

I had hoped that we would have the majority of our impressions on it by this.

that we would have the majority of our impressions on it by this quarter, or at least by the end of this quarter. We did it last quarter, so now over 50% of impressions are bought on Solomar. We expect over 100% by the end of the year, and I think that could even come sooner if things go really well..

Quarter or at least by the end of this quarter. We did it last quarter. So now over 50% of impressions are bought on solar Maher, we expect over 100% by the end of the year.

And I think that could even come.

Sooner if things go really well.

But we are looking at 100%

But we are looking at a 100%.

of impressions bought on our new product or on Solomar before the end of this year.

Of impressions bought on our new product or unsold Lamar before the end of this year.

So pretty amazing transition given we just launched that on 7.7.

Pretty amazing transition.

Given we just launched that on 77.

But that's great and it makes it so that we have a better user experience and we think that we have more stickiness because that experience is also just much easier for people.

But that that's great.

So that we.

Have a better user experience and we think that we have.

More stickiness because that experience is also just.

It's easier for people to <unk>.

use and make decisions. But it also is driving more data usage where the number of data elements applied to each impression is more than doubled. There's more usage of COA, which is our AI and ML, where adoption is now over 90%. The average number of channels is increased by 50%. So channels being things like mobile, display,

To use and make decisions, but it also is driving more data usage where thats.

The number of data elements apply to each impression has more than doubled there's more usage of Colorado, which is our AI and ml, where adoption is now over 90%. The average number of channels has increased by 50% So channel as being things like mobile display.

CTV, video, audio. So when you see that increase by fifty percent, what you're seeing is people being holistic in the way that they're buying. And for the first time ever we're doing I think unprecedented work in comparing apples to oranges in the media landscape. And then just seeing a massive increase in first party data usage. And that is encouraged as well as enabled by UID as well.

CTV.

Video audio and so when you see that increased by 50% what youre seeing is people being holistic in a way that they are buying and for the first time ever we're doing I think unprecedented work in comparing apples to oranges and the media landscape and then just seeing a massive increase and first party data usage and that Hasnt.

Current as well as enabled by <unk> as well.

So I expect Solomar to have a positive impact on UID, which was already going incredibly well. I expect OpenPath to have a positive impact. I expect Google's recent announcement to also have a positive impact on UID, too.

No.

I expect <unk> positive impact on <unk>, which was already going incredibly well I expect open path to have a positive impact and I expect.

<unk> most recent announcements also have a positive impact.

<unk> two.

So really both of those themes are some of the brightest spots of R2022 ahead.

Sure.

So really both of those things are some of the brightest spots of our 2022.

Thank you.

Thank you. Your next question is coming from Laura Martin from Needham. Your line is live.

Thank you. Your next question is coming from lower Martin from Needham Your line is live.

Good morning, can you hear me okay, Jeff? We can. How are you, Laura? Hi, I'm great, Jeff. Thanks. So the question I've gotten more frequently this morning after you guys reported earnings above CTC.

Good morning can you hear me Okay. John if we can how are you Laura.

Hi, I'm great job. Thanks.

The question I've gotten more frequently this morning. After you guys reported earnings.

So you've said a couple of times that CTD is growing fastest and driving your growth. So the question then becomes, how do you

So you've got a couple of times.

Growing faster and driving your class. So the question then becomes the grille your total year revenue at 42%, but the fourth quarter, 24%.

You grew your total year revenue at 42%, but the fourth quarter 24%. Does that mean that CTV growth essentially have?

<unk> SL.

Essentially harm and any kind of metrics you can give us.

and any kind of metrics you can give us. And how big is CTV today as a percent of your total revenue?

<unk>.

Today as a percent of your total revenue.

Any kind of clarity you can give us around CTV size and momentum and whether it's slowing CPM. Love that. Second business model housekeeping item.

Any kind of clarity you can give us about <unk>.

Rising momentum, whether it's flowing through.

That second business model housekeeping item very excited about this data marketplace you talked about a lot today My question is.

Very excited about this data marketplace you talked about a lot today. My question is,

Do you have a rev share, like Android does, of the data that's bought on your platform, or are you just getting more spend on your platform and that's how you're making more money from implementing that data marketplace? Thanks, Jeff.

Do you have a Rev share like Android does the data that spot on your platform or are you just getting more spend on your platform and that's how you are making more money from implementing that data market alright. Thanks, Jeff.

You bet, and I'll take a first crack at both questions and then if Chris or Blake want to add anything on the numbers.

You bet.

And I'll take.

First profit.

Bulk questions, Chris or like want to add anything on that.

On the numbers.

<unk>.

We don't break out any of our channels specifically is as a total I will say that CTV is definitely growing faster than the rest of our business.

And I do believe CTV growth is leading the way there are some unique things about comps and whatnot, but I think they can talk about but I don't think thats indicative of the growth of our business or the growth of CTV.

So I'm not certain that that comparison gives you any insight into the business or...

So I'm not certain that that comparison.

Any insight into.

And to the business or CTV, specifically as it relates to.

As it relates to the business model on our data marketplace, we do make money on the data that gets purchased.

The business model.

On our data marketplace, we do make money.

On.

The data that gets purchased.

So it's not just about creating spend in media. We make money on all forms of spend, meaning whether they buy media or whether they buy data.

So it's not just about trading spend in media, we make money on all forms of spend meaning whether they buy media or whether they buy data.

So we are incentivized to get data to be used more often, but of course what we do is create models so that we never use the data unless it is mathematically obvious to create benefit for the advertiser.

So we are incentivized to to get data to be used more often but of course, what we do is create models. So that we never use the data and let it is mathematically obvious to create benefit for.

Sure.

Advertiser.

And so what that has enabled is us to constantly be doing work to make certain that we're adding more value than we're extracting.

No.

What that what that has enabled us to constantly be doing work to make certain that we're adding more value than we're extracting that's actually one of the reasons why I'm. So bullish about the changes that we've made to the data marketplace is there.

That's actually one of the reasons why I'm so bullish about the changes that we've made to the data marketplace. We are creating way more value for the advertiser.

We are creating way more value for the advertiser.

Now on unit economics we don't expect that to change. So in other words, I don't expect our take rate to meaningfully change in either direction, positive or negative as a result of this, but I do expect the flywheel to spin fast.

Now on unit economics, we don't expect that to change so in other words I don't expect our take rate meaningfully change.

In either direction positive or negative as a result of this but I do expect expect the flywheel spin faster, we do make money on data. However.

We do make money on data, however, so we're encouraged to either put it towards working media or put it towards data, but we better earn our keep, which is exactly what our clients want from us. The fact that we're using more data just means that we're using that data in an intelligent way to make certain that the...

So we're encouraged to either put it towards working media put it towards data, but we better earn our keep which is exactly what our clients want from us. The fact that we are using more data just means that we are using that data in an intelligent way to make certain that the.

The incremental usage is worth it to the advertiser. The fact, that's working across the board I think is actually separating us from the pack with everybody else in part because we have that objectivity and alignment with the advertisers.

And then Laura I'll, just really quickly on top of Jeff I think when you think about this from a comparison perspective.

Q4 results of a 24% revenue growth or comparing against our hardest comp from last year because of the U S election, which was a high single digit share of our spend so when you exclude that election spend Q4 actually accelerated year on year from 34% up to 36.

our hardest comp from last year because of the US election, which was a high single digit share of our spend. So when you exclude that election spend, Q4 actually accelerated year on year from 34% up to 36% in Q4 of 2021. So really encouraged by that because Q4 of 2020 also besides the election comp.

Percent in Q4, 'twenty, one so really encouraged by that because Q4 of 2020 also besides the election comp we had a kind of a pretty big flush recovery that came out in Q4. So we're pretty excited about that and then with regards to the kind of wait till the mix.

we had a kind of a pretty big flush recovery that came out in Q4, so we were pretty excited about that. And then with regards to the kind of weight or the...

Video, including CTV and mobile, each represent around 40 percent share of the business and then display and audio represent about 15 and 5 percent each. So that should give you some idea of that mix going forward.

Video, including CTV and mobile each represent around 40% share of the business and then display and audio represent about 15% and 5% each such as give you some idea of that mix going forward. Thanks.

Thanks, Laura.

Thank you. Your next question is coming from Tom White from D.A. Davidson. Your line is live.

Thank you. Your next question is coming from Tom White from D. A Davidson your line is live.

Great guys, thanks for taking my question and nice results. Just on the Open Path announcement, can you elaborate a bit more on the future of that strategy?

Great guys. Thanks for taking my question and nice results.

On the open path announcement can you just elaborate maybe a bit more on the future of that strategy.

You know, for example, does it you see it going beyond just the web and maybe into other channels like mobile or CTV and then maybe for Blake maybe comment on the impact to your financial from the strategy over time. Just curious about you know, how we should think about maybe savings on infrastructure costs and maybe possible revenue capture from the Publishers that participate. Thanks.

For example, does it do you see it going beyond just the web and may be into other channels like mobile or CTV and then maybe for Blake maybe comment on the impact to your financial from this strategy over time, just curious about how we should think about maybe savings on infrastructure costs and maybe possible revenue capture from the publishers that.

Thanks.

Yeah, so as it relates to Open Path, we definitely see this as extensible into CTV, which we've already indicated will happen, but also potentially into mobile. So I think increasingly publishers are interested in cleaning up the supply path.

Yes, so as it relates to open path.

We.

Definitely see that.

Sure.

Extensible into CTV.

As we've already indicated will happen, but also potentially into mobile.

So I think increasingly.

Publishers are interested in.

And cleaning up the supply path.

Increasingly, advertisers are interested in cleaning up the supply path. And, you know, we've always looked at it as we have to earn our keep and everybody in the supply path does. And we just want to make it so that the market can be as efficient as possible because the open internet, in order to compete with the walled garden strategy, has to be operating efficiently.

Increasingly advertisers are interested in cleaning up the supply path.

And we've always looked at it is we have to earn our keep and everybody in the supply path does.

And we just want to make it so that the market can be as efficient as possible because the open internet in order to compete with the walled garden strategy.

Has to be operating efficiently that requires a bit more moving parts, but thats a better global economy, that's a better ecosystem, that's a better internet for the world.

that requires a bit more moving parts, but that's a better global economy, that's a better ecosystem, that's a better internet for the world. And in order for us to enable that, we think we have to continue to enable direct integration when content owners and publishers want to do their own yield management. I think it's really important that you highlighted CTV, because nowhere is it more true that content owners want to do their own yield management.

And in order for us to enable that we think we have to continue.

To enable direct integration win content owners and publishers want to do their own yield management.

Really important that you highlighted CTV because nowhere is this more true that content owners want to do their own yield management, then CTV, but I do want to underline that we are not.

than in CTV. But I do want to underline that we are not trying to become an SSP. We are not getting into yield management. That is a job of an SSP. Or in the case where content owners want to do it themselves.

Trying to become an SSP, we're not getting into yield management.

Job, an SSP or in the case, where customers want to do it themselves.

of course their job. But that's something that we believe in order to protect our objectivity, we should stay out of what we expect to do for as far as...

Of course their job.

But.

That's something that we believe in order to protect our objectivity.

We should stay out of which we expect to be there for as far as we can see in the future.

And just to follow on and even try to be more clear, we expect no material impact to the P&L or our take rate from this. Like Jeff said, like there's opportunities to spin the flywheel that we're excited about and in the support of the open internet. We don't have any incentive to steer purchases and we're not doing yield management. We continue to represent the buy side in what we do and so, you know, no material impact on the P&L side.

Just to follow on and even tried to be more clear, we expect no material impact to the P&L or our take rate from this like Jeff said like there's opportunities to spin our flywheel that we're excited about and the support of the open Internet. We don't have any incentive to steer purchases and we're not doing yield management as we continue to represent the <unk>.

The size and what we do and so.

No material impact on the P&L side.

Thanks, Tom.

Thank you. Your next question is coming from Brent, sales from Jefferies. Your line is live.

Thank you. Your next question is coming from Brent Thill from Jefferies. Your line is live.

jeff everyone would love to hear your perspective on the international opportunity i know you put a lot of investment in time

Jeff everyone would love to hear your perspective on the international opportunity I know, you've put a lot of investment and time.

cracked the code there. What's your view there? And for Blake, can you maybe just talk about the magnitude of Q4 upside was a little bit lower than we've seen. Was there anything on supply chain or advertisers pulling a little bit at the end of the quarter given the COVID overhang or, you know, any thoughts you have on that side? Thanks.

Trying to crack the code there what what's your view there and for Blake can you.

Maybe just talk about the magnitude of Q4 upside was a little bit lower than we've seen was there anything on supply chain or advertisers pulling a little bit at the end of the quarter given given the COVID-19 overhang or.

Any thoughts you have on that side. Thanks.

Thank you. Yeah, I'm very excited about the international prospects. So, you know, I'm always I start macro, which is.

Thank you, yes, im very excited about the international prospects, So I'm always.

You know, we're a few years away from being at that trillion dollar TAM and roughly 60 plus percent of that is outside of the United States or outside of North America. So of course, once you compare these with your average

Our macro which is where a few years away from being at that trillion Tam.

Roughly 60 plus percent of that is outside of the United States or outside of North America.

So of course.

We want to capture that opportunity and because we work with the biggest brands in the world who advertise all over the world They don't want you know 200 DSPs demand Their companies as partners

We want to capture that opportunity and because we work with the biggest brands in the world, who advertise all over the world and they don't want.

200 DSP.

As partners.

they would like one to take them all over the world and especially to use their learning in any market to benefit.

They would like one to take them all over the world and especially to use their learnings.

In any market to benefit all the other markets.

And so, as of course you know, our focus has been on expanding CTV.

As of course, you know.

Our focus has been on expanding in CTV.

all over the world. CTV more than doubled across APAC. CTV and EMEA grew by more than 4x in 2021.

All over the world.

<unk> more than doubled across APAC CTV in EMEA grew by more than Forex in 2021.

Shanghai and Hong Kong have been driving our growth in northern Asia-Pacific. And just some amazing partnerships across APAC with Samsung smart TV devices now reaching over 50 million viewers and us having access there. Xiaomi in India or Disney Plus Hotstar in India.

Shanghai and Hong Kong have been driving our growth in Northern Asia Pacific and just some amazing partnerships across APAC, but Samsung smart TV devices now, reaching over 50 million viewers and that's having access their xiaomi.

In India, our Disney plus Hot Star in India.

You know, again, China was our fastest growing office again, which

<unk>.

Again.

China was our fastest growing office.

Again, which.

When the numbers are small, that's less significant, but when you do it over and over again, it continues to be especially significant. Especially when you look at China and just say that's the second largest media market in the world, it's roughly half the size of the U.S., but it's growing at twice the pace.

When the numbers are small that's less significant but when you do it over and over again it continues to be especially significant.

Especially when you look at China, and just say that the second largest media market in the world. It's roughly half the size of the U S. But it is growing at twice the pace.

So with that being true, we think that represents a tremendous opportunity. And that we're in a unique position to many others who are looking at that market in that we are representing the largest brands in the world who want to spend in China.

So without being true.

We think that represents a tremendous opportunity and we're in a unique position to many others who are looking at that market in that we are representing the largest brands in the world who want to spend in China.

So unlike many other non-China based companies who have been hurt by trying to go into market in China, we come to the market mostly with a focus to spend in market and then to do extension where Chinese brands and products will reach all over the rest of the world which of course they want more distribution.

So unlike many other.

Non China based companies who've been hurt by trying to go into market in China.

We come to the market, mostly with a focused spend.

In market.

And then could you extension where Chinese brands.

And products will reach all over the rest of the world, which of course, they want more distribution.

So I'm very encouraged by the fact that we've seen all this growth in those areas.

So I'm very encouraged by the fact that.

We've seen all this growth in those in those areas.

But I can't underscore enough how important it is for us to continue to lead in CTV.

I can't underscore enough how important it is for us to continue to lead in CTV. We believe we've done that in the U S and we prove that in the U S and Australia.

We believe we've done that in the US and we proved that in the US and Australia, arguably years ago in 2020. In 2021, I think we started to show amazing green shoots across other markets in EMEA, most notably in the UK and Germany.

<unk> years ago in 2020, and 2021 I think we started to show amazing Green shoots across other markets in EMEA, most notably in the UK and Germany.

So with all of the progress of CPB around the world and the pressure on content owners, that is sometimes slightly different in other markets, but the general trend that is happening in the US is happening there too, just with slightly less content.

No.

With all of the the progress of CTV around the world and the pressure on content owners.

Sometimes it's slightly different than other markets, but the general trend that is happening in the U S. That's happening there too just with slightly less content, but that makes.

Even more valuable in some ways. It makes the ads more scarce, but it makes auction dynamics.

And real time pricing, even more valuable for those markets, which we think than just lends to our business model. So we expect to continue to lead in CTV around the world.

Then the following up on your 2-4 question, you know the quarter was fundamentally really strong. We had the hardest

And then.

Following up on your Q4 question.

<unk> was fundamentally really strong we have the hardest comp that in a long time.

that in a long time in Q4 comparing Q4 at 20.

In Q4, comparing it to Q4 of 2000 and not just because of the elections, but also because we have that ramp back out of Covid that was re a real accelerator for us in 2020, so thinking about those issues I think that the Q4 look really good.

not just because of the elections, but also because we had that ramp back out of COVID that was a real accelerator for us in 2020. So thinking about those issues, I think that the Q4 looked really good. No supply chain issues to call out at all. I think another data point is that you just look at a two-year simple stack on growth rates in Q4, just the year-over-year.

No supply chain issues to call out at all I think another <unk>.

Data point is if you just look at a two year simple stack on growth rates in Q4, just the year over year 2020 . One Q4 was faster than the full year for us and so it just goes to the strength and the momentum that we've seen and that we've now.

Q4 was faster than the full year.

for us. And so it just goes to the strength and the momentum that we've seen in that, you know, we've now kind of disclosed now into our guidance.

Kind of disclose now into our guidance. So we're really excited about.

Thanks.

Thank you. Our final question comes from Matt Swanson at RBC. Your line is live.

Thank you. Our final question comes from Matt Swanson RBC. Your line is live.

All right, thank you guys so much for squeezing me in here. I'll ask two quickly. The first for Jeff, thinking about ramp time for Shopper Data in kind of in two ways. One, as far as how long it takes a partnership, like what we're seeing with Walgreens to come together. And then also on the Walmart side, the milestones you're thinking of how that's going to ramp over time.

Alright. Thank you guys. So much for squeezing me in here too.

To quickly the first for Jeff.

The thing about ramp time for shopper data and kind of in two ways, one as far as how long. It takes a partnership like what we're seeing with Walgreens to come together and then also on the Walmart side.

Millstones, you're thinking of how that's going to ramp over time, recognizing it's early and then for Blake Q1 guidance is really strong the 38% growth you know you've been accelerating off the adjusted 36% I guess the two things one you mentioned a really strong start to the year. If you want to elaborate at all on that and then is there any.

recognizing it's early. And then for Blake, Q1 guidance is really strong, the 38% growth, you know, even accelerating off the adjusted 36%.

I guess the two things we won, you mentioned a really strong start to the year. If you want to elaborate at all on that. And then is there anything from a seasonality standpoint when we're trying to maybe make an inference to a full year number that you would point out as being different or special in 2022? Thank you.

Anything from a seasonality standpoint.

What we're trying to maybe make an inference to a full year number that you would point out as being different or special in 2022. Thank you.

First of all, thanks for the question, Matt. So, you know, the pace of ramp up in shopper marketing data or retail data is largely dependent on the strategies that we deploy, and of course we agree on with the retailer, and then their ability to move fast.

Well first of all thanks for the question Matt.

So.

The pace of ramp up and shopper marketing data our retail data.

Is largely dependent on the strategy that we deployed and of course, we agree on with.

But with the retailer.

And then their ability to move fast.

So, you know, it often takes some time because...

So often take some time, because winning hearts and minds and then trying to be very strategic and everybody is extremely sensitive about privacy today. So they're all doing lots of work to just make certain that they are respecting consumer privacy. One thing I just want to highlight on this point is that especially.

winning hearts and minds and then trying to be very strategic and everybody is extremely sensitive about privacy today. So they're all doing lots of work to just make certain that they're respecting consumer privacy. You know, one thing I just want to highlight on this point is that especially brands, especially advertisers who are in the business of creating long-term relationships with consumers.

Brands, especially advertisers who are in the business of creating long term relationships with consumers. They don't want to put our consumers they don't want them to be upset with them.

They don't want to piss off consumers. They don't want them to be upset with them. And so as a result, they're trying to make very deliberate choices so that they can provide the very best.

And so as a result, theyre trying to make very deliberate choices. So that they can provide the very best to consumers.

That of course is bringing them personalization while of course at the same time respecting privacy.

That of course.

It is bringing them personalization while.

Of course at the same time respecting.

in order to set up those structures and then also to create the right economics can be very different from partner to partner partly because of their agility but also because there's a whole bunch of different ways to deploy that insight.

Privacy in order to set up those structures and then also to create the right economics.

It can be very different from partner to partner.

Partly because of their agility.

But also because there's a whole bunch of different ways to deploy that insight.

It all, I think at end state looks very similar.

At all at all.

I think as.

It looks very similar which is people are trying to leverage their data so that.

which is people are trying to leverage their data so that every advertiser is optimizing to selling product in that store, whether it's Walmart or Walgreens or those that are of an dispute using fiat or prob dimensions.

Every advertiser is optimizing to selling product in that store, whether it's walmart or walgreens or those that are next.

And that is very good for the retailer and that is providing end to end measurement That is more difficult to find in other environments, especially the walled gardens Where they are doing sort of measurement on their own without validation

And that is very good for the retailer and that is providing end to end measurement.

It's more difficult to find in other environments, especially the walled garden.

Where they're doing sort of measurement on their own without validation.

So that holy grail of end to end measure.

So that Holy Grail of end to end measurement.

is coming from many retailers and the pace at which that is onboarded is up.

It's coming from many retailers and the pace at which that is onboard it is up to them.

And then, Ruth, in regards to your Q1 question, Matt, yeah, strong start to the year, it's broad-based. I don't have anything unique to call out with regards to any single area to highlight. I think that it's just momentum we've seen in January that has continued into early part of February so far. And just the many positive trends for this business, which you hear us speak to a lot, just tend to continue, which is CTV's leading the way. We have exciting...

And then Ruth regards to your Q1 question Matt.

Yeah.

<unk> start to the year its broad based I don't have anything unique to call out with regards to any single area to highlight I think that it's just momentum we've seen in January that has continued into the early part of February so far and just the many positive trends for this business, which you hear us speak to a lot of just tend to continue which is.

<unk> is leading the way we have exciting international opportunities the shopper marketing marketing opportunity as well you've heard about Soma ramping your IV scaling.

the shopper market marketing opportunity as well. You've heard about Solomar ramping, GIB scaling. And so just all those tailwinds, I think.

So just all of those tailwind I think.

you know, drove us essentially to that guide on the 38% year-over-year growth, which does represent the acceleration that you called out from prior year. With regards to your seasonality question...

Drove us essentially to that to that guide on the 38% year over year growth, which does represent the acceleration that you called out from prior year with regards to your seasonality question.

You know, assuming no major disruptions like related to the macro environment. So, if that's COVID or if something from supply chain were to, you know, kind of be activated, you know, it's possible that this year in 2022 and then 2023,

Assuming no major disruptions like related to the macro environment. So if that's COVID-19 or if something from supply chain were too.

Can be activated it is possible that this year in 2022, and then 2023 start looking a little closer to how I would say the pre pandemic years looked in terms of.

start looking a little closer to how I would say the pre-pandemic years looked in terms of seasonality patterns.

Seasonality patterns, but.

You know, that said, every year is a little different. So if we're a few points better or worse for that, you know, from a seasonality perspective, I wouldn't recommend reading.

That said every year is a little different so if we're a few points better or worse for that.

From a seasonality perspective, I wouldnt recommend reading into it too much.

Thanks, Matt, and thanks for everyone for joining today.

Thanks, Matt and thanks for everyone for joining today.

Thank you, ladies and gentlemen. This concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

Thank you ladies and gentlemen. This concludes today's event you may disconnect at this time and have a wonderful day. Thank you for your participation.

Okay.

[music].

St.

Good day ladies and gentlemen and welcome to the Trade Desk fourth quarter 2021 earnings conference call. At this time all participants have been placed on a listen only mode and we will open the floor for your questions and comments after the presentation.

Good day, ladies and gentlemen, and welcome to the trade desk fourth quarter 2021 earnings conference call at.

At this time, all participants have been placed on a listen only mode and we will open the floor for your questions and comments after the presentation. It.

It is now my pleasure to turn the floor over to your host, Chris Toth. Sir, the floor is yours.

It is now my pleasure to turn the floor over to your host Chris Toth, Sir the floor is yours.

Thank you, operator. Hello and good morning to everyone. Welcome to the Trade Desk fourth quarter 2021 earnings conference call. On the call today are founder and CEO Jeff Green and chief financial officer Blake Grace.

Thank you operator, Hello, and good morning, everyone. Welcome to the trade desk fourth quarter 2021 earnings conference call on the call today are founder and CEO , Jeff Green and Chief Financial Officer Blake Grayson.

A copy of our earnings press release can be found on our website at thetradedesk.com in the investor relations section.

Copy of our earnings press release can be found on our website at the trade desk Dot com in the Investor Relations section.

Before we begin, I would like to remind you that except for historical information, some of the discussion and our responses in Q&A may contain forward looking statements, which are dependent upon certain risks and uncertainties. In particular, our expectations around the impact of the COVID-19 pandemic on our business and results of operations, in addition to potential supply chain disruptions that could disrupt advertising spend, are all subject to change.

Before we begin I would like to remind you that except for historical information some of the discussion and our responses in Q&A may contain forward looking statements, which are dependent upon certain risks and uncertainties in particular, our expectations around the impact of the COVID-19 pandemic on our business and results of operations. In addition to potential supply chain disruptions that.

Could disrupt advertising spend are all subject to change.

Should any of these risks materialize or should our assumptions prove to be incorrect, actual financial results could differ materially from our projections or those implied by these forward looking statements?

Any of these risks materialize or should our assumptions prove to be incorrect actual financial results could differ materially from our projections or those implied by these forward looking statements I encourage you to refer to the risk factors referenced in our press release and included in our most recent SEC filings. In addition to reporting our GAAP financial results.

I encourage you to refer to the risk factors referenced in our press release and included in our most recent SEC filings.

In addition to reporting our GAAP financial results, we also present supplemental non-GAAP financial data. A reconciliation of the GAAP to non-GAAP measures can be found on our earnings press release. We believe that providing non-GAAP measures combined with our GAAP results provides a more meaningful representation of the company's operational performance. I will now turn the call over to founder and CEO , Jeff Green. Jeff?

Jeff Green Jeff.

Thanks, Chris Good morning, and thanks to everyone for joining us today Q.

Q4, 2021 was another outstanding quarter for the trade desk and an exclamation point on a terrific year across the board we exceeded all our goals for 2021, which culminated in crossing the $1 billion revenue Mark ending the year with $1 $2 billion in annual revenue an increase of 43.

3% year over year.

Total platform spend was almost $6.2 billion. It's only 10 years ago, May of 2011, when we received our first penny of spend. To think, last year we passed 6 billion in spend. It is both astonishing and possible.

Total platform spend was almost $6 2 billion.

It's only 10 years ago May of 2011, when we received our first penny of spend too.

I think last year, we passed 6 billion in spend.

It is both astonishing and inspiring.

One aspect of our business in 2021 that was particularly encouraging was the pace at which we signed major customer agreements.

Last year, the top 25 advertisers on our platform increased their spend on the platform and more than 50% compared to the prior year.

And that's before some of these long-term agreements have fully activated. Momentum is also growing due to increased awareness and understanding of our value among brand marketers and their agents.

And Thats before some of these long term agreements have fully activated momentum is also growing due to increase awareness and understanding of our value among brand marketers and their agencies.

I'd like to spend my time today looking back on the highlights of 2021, but also discuss the factors that are shaping 2022 into what I expect will be the most impactful year TTV has ever had. I believe this will provide color on why brand marketers are increasingly gravitating to our platform.

Looking back on 2021, one of the highlights was the launch of our biggest product ever, Solomar. As you know, we launched Solomar on 7.7 after years of investment.

Looking back on 2021, one of the highlights was the launch of our biggest product ever solar Marc as you know we launched <unk> on 77 after years of investment.

But as with any major platform overhaul, there's always the question of exactly what the impact will be.

But as with any major platform overhaul. There is always the question of exactly what the impact will be.

The answer is that Solomar has been an upgrade to our business in every way. It helps advertisers and agencies embrace completely new ways of thinking about data, measurement, goal setting, and campaign optimization.

And I'm pleased to report that as of today, the majority of ad impressions on our platform are now bought via Solomar.

And I am pleased to report that as of today. The majority of AD impressions on our platform are now bought VSO tomorrow at the current pace, we expect to deprecate the legacy platform before the fourth quarter of this year to.

At the current pace, we expect to deprecate the legacy platform before the fourth quarter of this year.

to accomplish a complete transition to the new platform within about a year.

To accomplish a complete transition to the new platform within about a year.

is an impressive feat by anyone standards. And it speaks to the value that advertisers are realizing with Solomar.

Is an impressive feat by anyone's standards and it speaks to the value that advertisers are realizing with solar more.

Solomar was created to help advertisers make better data driven decisions at every step of the marketing funnel. And in doing so take full advantage of the power of the open Internet. We wanted to make setup easier and decisions more data driven. We also wanted to make certain that our AI and machine learning product branded product was always on when the benefit was obvious.

He was always on when the benefit with obvious.

With a better blend of human and machine, advertisers can apply the right data automatically. And Solomar can optimize everything from predictive clearing to audience targeting to price discovery. Every ad campaign becomes more effective, every ad dollar is working as hard as it can. And as a result, the flywheel spins faster, activating even more campaign dollars. Let me share some data about how the...

With a better blend of human and machine advertisers can apply the right data automatically and solar mark can optimize everything from predictive clearing to audience targeting to price discovery every AD campaign becomes more effective every AD dollar is working as hard as they can and as a result, the flywheel spin faster activating even more camp.

Dollars.

Let me share some data about how the move to solar Mara is going.

First, co-adoption on Solomar is now over 90%, nearly 50% higher than with the legacy platform.

First KOL adoption on solar is now over 90% nearly 50% higher than with the legacy platform.

In fact average channel usage for solo Mark campaigns has also increased about 50% with all of our advertisers get a better perspective on cross channel performance and insight into how an omnichannel campaign can take a consumer through an integrated advertising experience.

And finally, and probably one of the most important changes, for those advertisers that have switched to Solomar, the average number of data elements applied to each impression has more than doubled.

And finally, and probably one of the most important changes for those advertisers that have switched to <unk>. The average number of data elements applied to each impression has more than doubled.

Many of the amazing results we are seeing from Solomar are due to restructuring of our data market.

and the courage of our data partners to try something new in the hopes of upgrading the entire open internet. As a result, Solomar is a bit of a two for one. A better decision engine.

As a result, <unk> is a bit of a two for awhile.

A better Decisioning engine and the better data marketplace.

Let me spend a moment on the improved data marketplace as it represents a significant upgrade to how the entire industry currently thinks about data and data price.

Let me spend a moment on the improved data marketplace as it represents a significant upgrade to how the entire industry currently thinks about data and data pricing.

Until now, I would describe the marketplace for data in digital advertising as somewhat anemic. That's largely because of the way that data has traditionally been priced across the web. In walled gardens, data pricing is opaque with effectively zero price.

Until now I would describe the marketplace for data and digital advertising is somewhat anemic and thats largely because of the way that data has traditionally been priced across the web.

In walled gardens data pricing is opaque with effectively zero price discovery in the open web historically data pricing has been more fixed than variable, which leaves little room for price discovery or even value discovery, it's akin to a real estate agent charging a fixed dollar rate regardless of the value of the home that's being sold.

In the open web, historically data pricing has been more fixed than variable, which leaves little room for price discovery or even value.

It's akin to a real estate agent charging a fixed dollar rate, regardless of the value of the home that's being sold. In the case of data, that has meant that each data element could be too expensive relative to the value of the impression. This also then becomes an inhibitor to advertisers who want to apply a full scope of data to every impression.

In the case of data that has meant that each data element could be too expensive relative to the value of the impression there.

It's also then becomes an inhibitor to advertisers who want to apply a full scope of data to every impression.

But with Solomar and the new data marketplace, we have shifted our data pricing model away from fixed rates toward percentage of CPM.

But with all of them are in the new data marketplace, we have shifted our data pricing model away from fixed rates toward percentage of CPM.

This would never have been possible without the support and commitment of the one hundreds of data partners, who participate on our platform and who we're willing to make this change this allows for much greater flexibility and data deployment based on both value and relevance.

We have created a market where there's more accurate price discovery for data, which is more closely aligned to the value it creates instead of high fixed rate.

We have created a market where there is more accurate price discovery for data, which is more closely aligned to the value. It creates instead of high fixed rates.

Additionally, there is another major data marketplace design change that will fully rollout in the first half of 'twenty to this.

This change will address the major obstacle to cure the open internet data anemia.

Lastly, there is a disincentive.

to layer multiple data elements onto the same impression because the cost is prohibitive. And price discovery has been a problem.

You layer multiple data elements onto the same impression because the cost is prohibitive and price discovery has been a problem.

With variable pricing now universal in our data marketplace, we can now add fractional price.

With variable pricing now universal and our data marketplace, we can now add fractional pricing.

This creates incentive to use data whenever it adds value and rewards data companies for the value they create.

we expect that this will create the most robust data marketplace ever on the open internet. Not only will the open internet benefit, but we will be able to layer in more data, significantly enriching each ad impression for the ad.

We expect that this will create the most robust data marketplace.

<unk> on the open Internet.

Not only will be open internet benefit, but we will be able to layer in more data significantly enriching each ad impression for the advertiser.

In total this increases the use of data as we enrich each impression advertisers on our platform become more effective and they invest more already our data marketplace changes have been so successful that we have seen advertiser bid win rates increased significantly because they had been much more precise.

In understanding the value of each ad impression.

Again, this means advertisers are inclined to spend more because they are achieving even better ROI, making the flywheel spin faster.

Again this means advertisers are inclined to spend more because they are achieving even better ROI, making the flywheel spin faster.

Looking back on another highlight from this last year, we blazed new trails in the rapidly emerging world of shopper marketing, another green field that is open to us because of the use of data.

Looking back on another highlight from this last year, we blazed new trails in the rapidly emerging world of shopper marketing. Another greenfield that is open to us because of the use of data.

As of the fourth quarter, we are up and running with the Walmart DSP with select major advertisers. The initial results have been very encouraging.

As of the fourth quarter, we are up and running with the Wal Mart DSP with select major advertisers. The initial results have been very encouraging.

Bic is one of the early adopters. As you probably know, Bic is headquartered in France, but is a global leader in consumer products such as ballpoint pins, lighters, and grooming.

Bic is one of the early adopters as you probably know biggest headquartered in France, but as a global leader in consumer products, such as ballpoint pen lighters and grooming.

And Walmart is a major retail partner for them. In December , Bic ran holiday campaigns for some key products, including men's and women's razors, using the new Walmart DSP. The results were even better than we hoped for. Bic achieved return on ad spend, or ROAS, of just under 500%. That means for every advertising dollar, they drove $5 in consumer purchases.

And Walmart is a major retail partner for them in December Big brand holiday campaigns for some key products, including mens and womens razors using the new Walmart DSP. The results were even better than we hoped for Vik achieved return on AD spend or ROE as of just under 500%.

That means for every advertising dollar they drove $5 in consumer purchases.

This data is significant for a few reasons. First, with closed loop measurement, BIC is able to get a very rapid assessment of ROAS.

This data is significant for a few reasons first with closed loop measurement, because they're able to get a very rapid assessment of rollouts.

<unk> data available in the Walmart Dfc makes it much easier for brands like <unk> to make the connection between campaign spend and consumer purchase and second ROE as of 500%.

Is well above the industry average according to Nielsen a good ROE as is around 270%. So if you take an industry standard benchmark and almost double it is pretty staggering.

Matt DePaulo is Vic's senior manager of omni-channel growth and he recently spoke about the power of the Walmart DSP. To quote him directly, he said, I don't want to overstate it, but this is something the industry has been waiting for for a very long time. And now we finally have it at our disposal. We had suspected that the trade desk would be a powerful complement to Walmart's capabilities and this validated our suspicion.

Matt The Apollo is <unk> senior manager of Omnichannel growth and he recently spoke about the power of the Walmart DSP.

To quote him directly he said I don't want to overstate it but this is something the industry has been waiting for for a very long time and now we finally have at our disposal. We had suspected that the trade desk would be a powerful complement to Walmart capabilities and this validated our suspicion.

FIC represents the sentiment of many advertisers. They want retail data to help them improve and their ad spend in digital.

<unk> represents the sentiment of many advertisers they want retail data to help them improve and their AD spend in digital.

Amy Landy is the Commerce Practice Lead at Publix for North America.

Amy Lanzi is the commerce practice lead equivalent for North America.

We recently spoke with the current our online news sites about how the Walmart DSP is capturing the attention of Cmos, who previously werent has hands on with the retailers to quote her directly she said it used to be that you would negotiate how you've got a better display in a physical store now has a dynamic conversation.

That includes their digital shelves and how brands can reach Walmart shoppers, who are outside the retailer's ecosystem.

In the coming quarters, we'll have more to say about how we're partnering with other retailers in innovative ways to unlock the power of shopper marketing data for advertisers. As I mentioned, this is just one of the areas where brand marketing leaders are bringing a greater appreciation of the value of programmatic.

In the coming quarters, well have more to say about how we're partnering with other retailers in innovative ways to unlock the power of shopper marketing data for advertisers as I mentioned. This is just one of the areas where brand marketing leaders are gaining a greater appreciation of the value of programmatic.

Looking back on the amazing success in land grab here that was 2021 it is impossible to not spend some time talking about the rise of CTV in.

And I highlight CTV again because it is such an important driver of the brand shift to programmatic more broadly.

And I highlight CTV again, because it is such an important driver of the brand shift to programmatic more broadly.

The TV team is often the power center of a brand marketing department.

As TV digitizes, thanks to the massive consumer shift to streaming, advertisers are embracing the power of programmatic in their most significant channel. Once TV advertisers realize its potential, the focus rapidly shifts to the value of programmatic in an omni-channel context. And this is what I mean when I said in the past that CTV is probably the most important driver of change across digital advertising.

As we enter this year's Upfronts season, I expect we will continue to see large TV companies further prioritize CTV as a part of that process. Indeed, the trade desk has already been invited to participate in some of the digital upfront programs. This year.

And while we've talked a lot in recent quarters about partnerships with major TV content companies in North America and Europe . The same dynamic is happening now in Asia. Our viewers are also rapidly shifting to CTV.

For example, we recently launched Yau, one of the fastest growing streaming platforms in Japan. Regardless of location, major brand advertisers increasingly realized the vital role that CTV plays in reaching audiences that have left or were never present on linear TV.

Our OTT.

We recently ran a campaign for one of Europe's top carmakers, Renault, in Spain, working with their agency, Omnicom.

We recently brand campaign for one of Europe's top carmakers, Renault and Spain, working with their agency Omnicom.

The campaign focused on a launch of a new SUV in Spain and were not wanted to reach as many potentially interested car buyers as possible.

That campaign focused on our launch of a new SUV in Spain and were not wanted to reach as many potentially interest in car buyers as possible with CTV, where now achieved a significant double digit incremental reach over linear.

With CTV, Renald achieved a significant double digit incremental reach over linear.

We're seeing the same phenomenon with brand advertisers around the world. They are embracing CTV as an essential element of their massive TV AD campaigns and because of the outsized effect that television has on most marketing department. This growing adoption spins the flywheel faster for us across all advertising channels.

Yesterday, we announced another very big initiative, Open Path. This is the biggest direct step we've made yet to improve the supply chain for our clients, us, and the open Internet.

Yesterday, we announced another very big initiatives open path. This is the biggest direct step we've made yet to improve the supply chain for our clients.

And the open Internet.

Let me take a moment to explain what that is open path is a product that enables content owners from television and across the west to plug into TPB directly.

Open path as a direct pipeline to publisher inventory for any publisher that chooses to integrate directly with us.

An inefficient supply chain is bad for advertisers and for public.

Inefficient supply chain is bad for advertisers and for publishers. We are very pleased to launch open path with some of the largest journalistic publishers in the world, including the Washington Post Con Dynast, Reuters the Tribune and USA today.

We are very pleased to launch Open Path with some of the largest journalistic publishers in the world, including The Washington Post, Conde Nast, Reuters, The Tribune, and USA Today.

Open path is especially helpful for larger publishers and content owners that want to do their own yield management. We are not competing with ssp's are becoming an AD network, we represent the advertisers in the auction.

Our goal in creating this product is to provide a high bid directly to publishers and content owners who want to do their own yield management.

Our goal in creating this product is to provide a high bid directly to publishers and content owners, who want to do their own yield management.

One of our core operating principles since our inception is the pursuit of a level playing field for digital advertising with transparency on all sides. We believe that's the best way to build trust and digital advertising, which will drive overall market growth and we also believe that on a level playing field everyone.

To compete fairly on the value they provide.

As a demand-side platform, we're confident that on a level playing field, we will continue to outperform and gain more market share of the growing TANF.

As the demand side platform, we're confident that on a level playing field, we will continue to outperform and gain more market share of the growing Tam.

Optimization initiatives, we will continue to prune supply paths that are opaque unfair or inefficient that said, we plan to continue to buy on Google's AD exchange.

For all the SSPs that provide yield optimization for publishers, we expect that this product and policy change will result in more spend for them.

Where all the SSP is that provide yield optimization for publishers, we expect that this product and policy change will result in more spend to that.

You might be interested as to why we started with journalism in terms of our initial partner.

You might be interested as to why we started with journalism in terms of our initial partners.

It is vital that we preserve the value exchange of advertising for journalism content, because journalism is such an important factor in the free flow of trusted information in any functioning society.

But Open Path will scale to any publisher that wants a direct path to our demand.

But open path will scale to any publisher that wants a direct path to our demand.

Let me just reiterate that this does not mean that the trade desk is getting into the SSP or the supply side business. This is not about that at all. We won't be getting into yield management or any of the various value propositions that a number of the great SSPs provide. Open path is simply a direct path into inventory. This is something that our advertising clients have been asking us for for a long time. And they've become more aware of the supply side inefficiencies over the past few months.

Let me just reiterate that this does not mean that the trade desk is getting into the SSP or the supply side business.

This is not about that at all we won't be getting into yield management or any of the various value propositions that a number of the great Ssp's provide open path is simply a direct path into inventory.

It is something that our advertising clients have been asking us for for a long time.

And they become more aware of the supply side inefficiencies over the past few months the.

The impact will be positive for SSPs that have invested in their publisher relationships and are offering value in terms of yield management.

The impact will be positive for <unk> that have invested in their publisher relationships and are offering value in terms of yield management.

As I said, we are launching Open Path in partnership with some of the world's leading journalistic outlets.

As I said, we are launching an open path in partnership with some of the world's leading journalistic outlets.

The Washington Post said, we have long believed that a more streamlined supply chain benefits both advertisers and publishers.

The Washington Post said, we have long believed that our more streamlined supply chain benefits, both advertisers and publishers and.

And McClatchy said, OpenPath aligns with our objective to build a transparent, well-lit digital ad environment driven by journalism that strengthens the communities we serve.

In Mcclatchy said open path aligns with our objective to build a transparent well digital AD environment, driven by journalism that strengthens the communities we serve.

Those are just a few, but I could not be more excited about the early momentum for Open Path. Of course, another area I'm especially excited about for 2022 is the progress the industry is making with UID.

Those are just a few but I could not be more excited about the early momentum for open path.

Of course, another area I'm, especially excited about for 'twenty. Two is the progress the industry is making with <unk>.

More major publishers around the world are committing to UID2, and more advertisers are transacting on UID2 on our platform.

More major publishers around the world are committing to USD, two and more advertisers are transacting on UAV chew on our platform.

<unk> media, Indonesia biggest media network is the latest publisher in Asia to announce it support of USD two <unk>.

<unk>, both an extensive portfolio of publishing properties, including newspapers TV networks and retail.

I believe that <unk> is not just a replacement, but a significant upgrade to cookies as a common currency of the open internet, creating a better experience for both consumers and advertisers.

And that was certainly the experience for cocoa village, a manufacturer and retailer of high end children's toys and furniture servicing in the North American market.

They wanted to secure and easy way to leverage their valuable first party CRM data to find new audiences for their products working with <unk>. They were able to model new potential customer groups drive incremental reach of almost 40%.

And a return on AD spend of more than 1000%. Additionally, we believe many of the same publishers that are signing up for open path will also sign up for <unk>. We expect that these two products will both improve the open internet and we will help to increase the adoption of the other.

In addition to publishers and advertisers who are adopting USB two important industry trade groups are also weighing in with their support perhaps one of the most important groups as the MMA because they represent the voice of the brand marketer and their board comprises many of the world's leading CMO.

I was invited to join their board last year precisely because brand marketers want to be fully engaged in new approaches to identity and measurement.

I was invited to join their board last year precisely because brand marketers want to be fully engaged in new approaches to identity and measurement. The MMA views <unk> as a solution that can solve for the identity needs of the open internet to quote their CEO , Greg Stewart correctly identity is the key to the future of <unk>.

The MMA views UID2 as a solution that can solve for the identity needs of the open internet. To quote their CEO Greg Stewart, direct

<unk>, and especially important to marketers and taking full advantage of the larger reach and need for transparency to consumer consent that the open web affords <unk>.

Has a great potential to be a solution that the whole industry can work on collectively to craft, a compliant and effective identity solution for everyone.

And over the years, we have built trust with those advertisers and their agencies.

That we can deliver premium value to their campaigns.

This business model is key in generating alpha in revenue and market share growth.

We continue to have customer retention rates above 95%

We continue to have customer retention rates above 95%.

Our engineering teams continue to lead the industry in innovation, charting new value opportunities for our advertising.

Our engineering teams continue to lead the industry in innovation charting new value opportunities for our advertisers.

As a result, we are one of the few high growth technology companies that consistently generate strong adjusted IBITA and free cash.

As a result, we are one of the few high growth technology companies that consistently generate strong adjusted EBITDA and free cash flow.

Our profitability and positive cash generation allows us to make long term investments that will ensure we continue to provide premium value.

That includes solar Mar, which is creating new value for advertisers by unleashing data and driving a greater return on AD spend spinning the flywheel for advertiser campaigns.

It's driving our leadership in CTV, the fastest growing channel in digital advertising and a driver of new thinking across the marketing spectrum.

It is driving our leadership in CTV, the fastest growing channel in digital advertising and a driver of new thinking across the marketing spectrum and positions us to make our supply chain that is more efficient for our advertisers and agencies in 2022 with initiatives like open path.

It positions us to make a supply chain that is more efficient for our advertisers and agencies in 2022 with initiatives like Open Path.

It enables us to pioneer work in shopper marketing, $100 billion market. You'll see us forge partnerships with major retailers worldwide, including Walgreens. Just yesterday, they announced that advertisers will be able to leverage new audience data services on our platform based on anonymized Walgreens shopper data.

It enables us to pioneer work in shopper marketing $100 billion market.

It has also allowed us to become a leader in political advertising.

In 2022, we will make meaningful progress with partners and industry bodies to make measurement better, especially for CTV and all digital spend outside the United States.

Our profitability and free cash flow will also allow us to invest for global growth.

Two thirds of global advertising spend is outside the United States. This is a major focus for us. Once again, we saw strong growth in our international markets in the fourth quarter.

Two thirds of global advertising spend is outside the United States. This is a major focus for us once again, we saw strong growth in our international markets in the fourth quarter.

driven largely by CTV. In fact, our CTV share of spend more than doubled in Europe in the quarter. And we continue to open promising new markets such as Taiwan, India, Italy, and the Nordics with impressive leaders who are making very rapid inroads. We are a global company and we expect our international revenue to outpace North America over the longterm because of the investments we're making in these markets.

We are a global company and we expect our international revenue to outpace North America over the long term.

Cause of the investments, we're making in these markets.

We are very well positioned for 2022 and beyond. Our business has many growth drivers as we've discussed today.

We are very well positioned for 2022 and beyond our business has many growth drivers as we discussed today.

And what I'm most excited about is the shift we're seeing among more and more senior brand markets.

In a variety of dimensions, marketers are becoming more familiar and enthusiastic about programmatic advertising. Whether it's the performance value of Solomar, the holy grail of retail data, the CTV revolution, or new supply path models, they understand the power of data-driven advertising to help them differentiate and grow in their businesses, and that's the most

It's the performance value of solar the Holy Grail of retail data, the CTV revolution, or new supply path models. They understand the power of data driven advertising to help them differentiate and drive growth in their businesses and that's the most rewarding thing of all.

I could not be more excited about the opportunity in front of us and our growth prospects into 2022 and beyond.

And with that, I'll pass the baton to Blake, who will give you more color on the quarter.

And with that I'll pass the Baton to Blake, who will give you more color on the quarter.

We delivered strong results in the fourth quarter, capping off a great year for our business.

Q4 revenue was $396 million, a 24% increase from a year ago. Excluding political spend related to the US election.

which represented a high single digit percentage share of our business in Q4 of 2020. Revenue increased approximately 36% year over year.

Share of our business in Q4 of 2020 revenue increased approximately 36% year over year that represented a slight acceleration from the prior year, which is impressive considering we experienced a strong recovery at the end of 2020.

That represented a slight acceleration from the prior year, which is impressive considering we experienced a strong recovery at the end of 2020.

For 2021, we ended the year with almost $6.2 billion in spend on our platform and nearly $1.2 billion in revenue, representing 43% year-over-year revenue growth.

For 2021, we ended the year with almost $6 2 billion in spend on our platform and nearly $1 2 billion in revenue representing 43% year over year revenue growth.

We also ended the year with adjusted EBITDA of just over 500 million and generated nearly 320 million in free cash flow in 2021.

We also ended the year with adjusted EBITDA of just over $500 million and generated nearly $320 million in free cash flow in 2021.

We are enthusiastic that the combination of our business strategy.

<unk> of around $1 trillion.

We have been encouraged to see advertisers accelerate their shift to data driven advertising in 2021.

Our results reflect the ongoing strength of programmatic advertising and the value that the trade desk provides thousands of agencies and brands as they are.

Work to connect with their customers across our platform every day.

For both the quarter and the full year connected TV continued to be our fastest growing channel at scale around the world as Jeff mentioned <unk> is now over 50% adoption and we're seeing promising results as customers on average are utilizing solar maher to leverage more data elements than they did previously.

In addition to the strong top line performance in Q4, we generated $192 million and adjusted EBITDA or about 48% of revenue.

When we outperformed on the top line, we often see that outperformance dropped down to EBITDA, which it did again in Q4.

EBITDA continued to benefit from temporarily lower than expected operating expense growth, partly driven by the continued virtual environment that we are still predominantly operating.

EBITDA continued to benefit from temporarily lower than expected operating expense growth, partly driven by the continued virtual environment that we are still predominantly operating in.

Even recognizing that, we are extremely proud of our continued ability to substantially grow our top-line revenue while also producing meaningfully positive EBIT.

Even recognizing that we are extremely proud of our continued ability to substantially grow our topline revenue while also producing meaningfully positive EBITDA.

From a scaled channel perspective, CTV by a wide margin, led our growth again during the quarter. For Q4, video, which includes CTV and mobile, each represented the largest percentage share of spend. Display, which also grew very nicely in Q4, and audio ended the year representing about 15% and 5% of our business, respectively.

From a scaled channel perspective, CTV by a wide margin led our growth again during the quarter.

For Q4 video, which includes CTV and mobile east represented the largest percentage share of spend.

Display, which also grew very nicely in Q4, and audio ended the representing about 15% and 5% of our business respectively.

Geographically, North America represented 86% and International represented 14% of our business for the quarter.

Geographically North America represented 86% and international represented 14% of our business for the quarter.

Hi, and Hong Kong drove spend growth that northern APAC in Australia, and Singapore led our growth in southern APAC.

In terms of EMEA, our London, and Paris offices led the way.

CTV growth across EMEA was again quite strong in Q4 and still represents a fraction of the share of spend we see in North America.

We believe there is still the potential for share gains and improvement in most of our verticals.

The law and politics vertical decelerated materially year over year in Q4, as expected, due to the comparison against the 2020 US election cycle.

The law and politics vertical decelerated materially year over year in Q4 as expected due to the comparison against the 2020 U S election cycle.

Operating expenses were 421 million in Q4, up 97% from a year ago. As expected, the growth in operating expenses during the quarter was driven primarily by stock-based compensation.

Operating expenses were $421 million in Q4 up 97% from a year ago as expected the growth in operating expenses during the quarter was driven primarily by stock based compensation.

specifically $158 million in stock-based compensation expense related to a long-term CEO performance award that was recorded in GNX.

Specifically $158 million in stock based compensation expense related to a long term CEO performance award that was recorded in G&A expense.

The 158 million expense included a tranche of the grant that accelerated based on stock price achievement and relative benchmark performance thresholds during Q4.

The $158 million expense included a tranche of the granted accelerated based on stock price achievement and relative benchmark performance thresholds during Q4.

In Q4, excluding stock-based compensation, operating expenses were 216 million, up 23% year-over-year. For the full year, we gained significant operating leverage in both our platform operations and G&A areas as we scaled the business and improved our efficiency.

In Q4, excluding stock based compensation operating expenses were $216 million up 23% year over year for the full year, we gain significant operating leverage in both our platform operations and G&A areas as we scaled the business and improved our efficiency.

Income tax was a benefit of 35 million in the quarter, mainly due to the tax benefits associated with employee stock-based awards, the timing of which can be very long.

Income tax was a benefit of $35 million in the quarter, mainly due to the tax benefits associated with employee stock based awards, the timing of which can be variable.

Adjusted net income for the quarter was $208 million or $0.42 per fully diluted share.

Adjusted net income for the quarter was $208 million or <unk> 42 per fully diluted share.

Net cash provided by operating activities was $163 million and free cash flow was $151 million in Q4. The strong cash generation during the quarter was driven predominantly by our operating...

Net cash provided by operating activities was $163 million and free cash flow was $151 million in Q4 <unk>.

I would like to remind you that the timing of cash collections and payments can significantly impact cash from operating activities and free cash flow results on a quarterly basis.

DSOs exiting Q4 were 107 days, down 14 days from a year ago. DPOs were 91 days, down 10 days from a year ago.

Dsos exiting Q4 were 107 days down 14 days from a year ago.

<unk> hundred 91 days down 10 days from a year ago.

We exited Q4 with a strong cash and liquidity position. Our balance sheet had 959 million in cash, cash equivalence, and short-term investments at the end of the quarter. We have no debt on the balance sheet.

Turning now to our outlook.

The year has started out strong and we estimate Q1 revenue to be at least $303 million, which would represent growth of 38% on a year over year basis, which is a slight acceleration over the prior year, we estimate adjusted EBITDA to be approximately $91 million in Q1.

Turning now to expenses. In 2022, we anticipate our stock-based compensation to rise from our normal run rate. This is being driven by approximately $265 million, a stock-based compensation expense we expect to include in 2022, related to the long-term CEO performance award.

Turning now to expenses in 2022, we anticipate our stock based compensation to arise from our normal run rate. This is being driven by approximately $265 million of stock based compensation expense. We expect to include in 2022 related to the long term CEO performance award at the end of 2021 the <unk>.

Formal award had $616 million in unrecognized stock based compensation, which is expected to be included in our G&A expense over approximately four years, but could be accelerated if the threshold criteria is met earlier than expected.

Excluding the performance grant for 2022, we expect total operating expense growth to increase on a year-over-year basis.

Excluding the performance grants for 2022, we expect total operating expense growth to increase on a year over year basis, considering our ability to generate strong EBITDA and cash flow, we see significant opportunities to invest in our business with a massive available market in front of us that can generate long term growth such as the general.

<unk> shift to connected TV, the expanding retail data opportunity and the expectation that our international operations will grow faster than North America over the long term.

To help take advantage of those opportunities, we expect to increase our rate of hiring over a pandemic affected periods and we will do so in a competitive hiring market.

We also expect the return to work expenses will begin to revert to pre pandemic levels, including live events travel and other related activities.

Understanding all of that we do expect the operating expense structure of the company to be better than it was prior to the pandemic and over the long term expect sales and marketing and technology and development areas to represent a larger share of our investments. We are proud of the fact that we are one of the few high growth technology companies that can consistently.

<unk> strong adjusted EBITDA and free cash flow.

And finally, with regards to tax, absent any changes to US tax laws, we expect our full year 2022 tax rate to be about 25%.

And finally with regards to tax absent any changes to U S tax laws, we expect our full year 2022 tax rate to be about 25%.

This is obviously impacted by any tax benefits associated with employee stop based awards, the timing of which can be very.

This is obviously impacted by any tax benefits associated with employee stock based awards, the timing of which can be variable.

In closing, we are pleased with the momentum of our business and the strong start to the year. We are highly optimistic about the long-term prospects for our business in 2022 and beyond.

In closing we are pleased with the momentum of our business and the strong start to the year. We are highly optimistic about the long term prospects for our business in 2022 and beyond.

In addition, we are in a position to drive not only long-term growth, but also to scale our business efficiently and continue to improve in the years to come.

<unk> not only long term growth, but also to scale our business efficiently and continue to improve in the years to come.

That concludes our prepared remarks. And with that operator, let's open up the call for questions.

That concludes our prepared remarks, and with that operator, let's open up the call for questions.

Certainly. Ladies and gentlemen, the floor is now open for questions. If you have any questions or comments, please press star 1 on your phone at this time. We do ask that while posing your question, please pick up your handset if you're listening on speakerphone to provide optimum sound quality.

Certainly ladies and gentlemen, the floor is now open for questions. If you have any questions or comments. Please press star one on your phone at this time, we do ask that while posing a question. Please pickup your handset if you're listening on speaker phone to provide optimum sound quality.

Once again, if you have any questions or comments, please press star 1 on your phone. Please hold while you poll for questions.

Once again, if you have any questions or comments. Please press star one on your phone.

Hold while we poll for questions.

Your first question is coming from Sean Patil from Susquehanna. Your line is live.

Your first question is coming from Sean <unk> from Susquehanna. Your line is live.

Hey guys, congrats on the fourth quarter results and the strong outlook.

Hey, guys. Congrats on the fourth quarter result, and the strong outlook.

I just had one question. Jeff, you know, there's some news out this morning. I was hoping you'd comment on, you know, just, you know, curious for your initial thoughts on the Android news. And just what kind of impact do you see for the Trade Desk and the industry? Thank you.

I just had one question Jeff.

Yes, there are some news out this morning, I was hoping you can comment on.

Sure.

Just curious for your initial thoughts on the Android news.

And just what kind of impact you see for the trade desk and the industry. Thank you.

You bet well. First of all, thanks for the for the kind words. I'm incredibly proud of the team. I'm proud of what we accomplished in 2021 and especially just an amazingly strong finish in Q4 and then I'm just equally encouraged by the momentum so far this year so I.

You bet.

First of all thanks, Shawn for the for the kind words.

<unk> proud of the team I'm proud of what we accomplished in 2021, and especially just an amazingly strong finish.

Q4, and then.

Equally encouraged by the momentum so.

So far this year so.

I just want to really underline that because I do think that there's a lot of discussion including much of my morning was just reading about Google's announcement, and I will just say I'm incredibly encouraged by the way this is rolling out. So first, I don't believe that this will have a negative impact on our business, and I think it has a good chance of having a positive impact on our business.

Aye.

I just want a really underlying that because I do think that there is a lot of discussion including much of my morning was just reading about Google's announcement, and I will just say I'm incredibly encouraged by the way. This is rolling out. So first I don't believe that this will have a negative impact on our business and I think it has a good chance of having a <unk>.

So in order to understand that though, of course, you just have to acknowledge that Google is getting hit from all sides as it relates to antitrust scrutiny as well as privacy.

Positive impact on our business.

In order to understand that though of course, we would just have to acknowledge that Google is getting hit from all sides as it relates to anti trust.

<unk> as well as privacy scrutiny.

This move by Google is not a surprise its not like Android could just sit around and be the only platform not to pull back on implicit data sharing.

Created an amazing transition period, which I think is very good for the industry and something that they've learned from I would say apples mistake on this.

And the rhetoric is really focused on improving the internet and a lot of things that theyre, saying now are different than things as I have said in the past.

So from our perspective we say bring on the explicit opt-in future.

So from our perspective, we say bring on the explicit opt in future.

When the UID is present and we get an opt-in, great. And when we don't, we'll do modeling and we're going to be fine no matter what. I'll also just note that Google has recently, of course, tested Flock and Topics and neither have gone very well and they haven't received very well in the antitrust discussion.

When the UAE is present and we got an opt in great.

And when we don't want to do modeling and we're going to be fine no matter what.

I will also just note that Google has recently of course tested floor and topics.

Neither have gone very well and they haven't been very received.

We received very well in the antitrust discussions in particular, but also and especially flops case and the privacy discussions.

but also in especially Flop's case in the privacy discussion.

So I'm really encouraged by Google pressing the point that they are committed to treating themselves equally as per their agreements with regulators.

In other words foundation foundational a Google needs targeted advertising.

And as a result that makes them a good partner of ours in this fight to just get things right between that balance of a quick profile of the internet.

As it relates to mobile specifically, mobile device IDs are of course relevant to in-app advertising, but that isn't all of mobile.

As it relates to mobile specifically mobile device Ids are of course relevant to in App advertising, but that isn't all of mobile.

So just important note there. And then, you know, Facebook and others have to monetize every impression, and most of those impressions are mobile. But we look at all the ad opportunities and choose the ones that are best. So I always use an example. It's not uncommon for a Fortune 500 company to be looking at 10 million QPS via our platform, and then they select the 1,250 that are the best for them.

Just important out there and then Facebook and others have to monetize every impression and most of those impressions are mobile, but we look at all the opportunities and choose the ones that are best So I always use as an example, it's not uncommon for a fortune 500 company to be looking at $10 million GPS VR platform and then they select.

1250 that are the best for them.

If that denominator changes a little bit, if it moves from 11 million to 10 million, then they just choose a different set of impressions.

At that denominator changes a little bit if it moves from $11 million to $10 billion.

Then they just choose a different set of impressions.

But I've used that before in this case that is absolutely the right way to think about this one were actually still getting the $11 million GPS.

Slightly less appealing.

Perhaps less meta data.

So we're still going to get to choose and it doesn't really change our value proposition at all it does perhaps shifted some dollars.

Two impressions that just have more meta data most notably in CTV.

But if I, Google and I just wanted to encourage everybody to think about this for a second and I have to respond to all of these pressures from all these different areas I actually want to see things like <unk> to succeed, but I'm under way too much scrutiny to endorse it.

But I'm under way too much scrutiny to endorse it, or especially to propose it myself.

Especially to propose it myself.

but I want to see it succeed. So in other words, I can't carry the ball, but I can block. To me, what they did today.

But I want to see it succeed so in other words I can't carry the ball, but I can block to me what they did today as they are blocking.

This is an amazing setup for UID2, and it makes CTV advertising even more appealing. Everything in CTV has a login, and that login is controlled by the content owner.

And those content owners, none of them have a monopoly, and none of them own a sizable OS. So the login makes personalization.

One of them.

A sizable OLS.

So the lager makes personalization up to the content owners.

Lastly, related to this, Apple is doing more and more non-ad personalization using their Apple ID. And I think this is indicative of the future. It's an opt-in future with clear consent to provide personalization perpetuating the very amazing quid pro quo of the open internet. And to me, that sounds a lot like what we've been after from the very beginning. So like we said, bring on the explicit opt-in future.

Lastly related to that Apple is doing more and more non AD personalization using their apple IV.

Thanks, Tom.

Thank you. Your next question is coming from Basilee Karishov from Cannonball Research. Your line is live.

Thank you. Your next question is coming from Vasily <unk> from Cannonball Research Your line is live.

Thank you very much. Jeff, I wanted to follow up on your comments on shopper marketing.

So can you give us more details about how Walmart launch went in Q4 and where your relationship with Walmart is going this year maybe?

Thanks, Vasili. So first, Walmart has been a fantastic partner. We are working very closely to just pioneer new thinking about retailer and brand relationships and of course, shopper marketing and retail data.

Seeing that.

You bet. Thanks, So first.

Walmart has been a fantastic partner.

We are working very closely to just pioneer.

New thinking about retailer and brand relationships and of course shopper marketing and retail data.

As you know, we launched in Q4. It was really test-based.

As you know we launched in Q4, it was really tough space.

Where we have roughly 20 large brands that we're running.

Walmart DSP.

Of course power on our platform.

We are continuing to just partner with more and more retailers, most notably we just announced yesterday our partnership with Walgreens.

Where they are launching.

Their own self service and claim room solutions on our platform.

So I want to emphasize the shop for marketing TAM is at least $100 billion. With a lot of discussion about antitrust these days, and I don't think there's much antitrust to comment at last.

So.

I want to emphasize the shopper marketing Tam is at least 100 billion.

A lot of discussion about anti trust these days.

Don't think theres much anti trust.

The.

Reasoning to be in retail because of how fragmented and how many opportunities. There are in that space of course, we are talking to many of them and it's just a.

A reminder of really closing the loop the value of the sort of Holy Grail of retail data is about closing the loop.

So, you know, we read a lot about just

No.

We read a lot about just.

measurement being affected in Facebook's earnings.

<unk> bin.

Affected and Facebooks earnings.

But that is very different in a world where you have data at the time of conversion.

And so to me, like all the landscape changes that have happened in the last few months are just actually pointing to the need for these retail partnerships, as well as the strategies that we're seeing deployed by many of the biggest retailers in the world. So we're very encouraged by it. We expect more partnerships to come.

The strategies that we are seeing deployed by many of the biggest retailers in the world. So.

Very encouraged by it we expect more partnerships to come and we expect retail and shopper marketing to continue to grow.

and we expect retail and shopper marketing to continue to grow, so 22 is going to be an amazing year for that growing up.

'twenty two is going to be an amazing year.

For that.

Growing up.

Thank you for thank you.

Thank you. Your next question is coming from Justin Patterson from KeyBank. Your line is live.

Thank you. Your next question is coming from Justin Patterson from Keybanc. Your line is live.

Great, thank you very much. Jeff, could you please expand on why Open Path is a threat to the SSPs, as well as just the significance of dropping Google's open bidding? And then for Trade Desk specifically, how should we think about the potential benefit to spend in unit economics on the platform from this type of initiative, particularly as it starts to pair up with a unified ID too? Thank you so much.

Great. Thank you very much Jeff.

Could you. Please expand on why open path isn't a threat to the SSP as well as just the significance of dropping two goals open bidding and then specifically how should we think about the potential benefit to spend and unit economics on the platform from this type of initiative, particularly as it starts to pair up with unified I'd.

You too thank you so much.

You bet.

So let me first start by explaining that.

What open bidding is and then I'll talk about what open path is because there's two separate strategic moves that were made.

On the same day so.

Earlier this week, we announced.

That.

We were doing these two things the first of which was that we were no longer going to have to.

It's a bid or participate in an open bidding or google's alternative to header bidding.

Many of you who have been involved with us for a while remember that the advent of header bidding was one of the best thing that ever happened to us as a company and one of the best things that happened in the open Internet what header bidding did is it made the market more competitive.

Tough to publish our decisioning, which ads to show.

Away from Google.

I put it into the open source header technology, that's called header bidding because thats code that just took place in the header tax of a webpage.

But Google created Ob as a response to it.

It definitely had a positive effect for Google.

But we don't believe that it created a level playing field certainly favor some parties over other if you read that Texas I'll.

Turning to general complaint.

You've read about Jedi blue and some of the.

Allegations there those are all related to open meeting.

So naturally we wanted to turn that off knowing that nearly every publisher and there hasnt another path to that inventory. So we don't lose out on any of the inventory, which is biased towards pads that are a little bit more transparent.

And more fair.

Which we think is good for our advertisers and good for everybody else. So the only people that it's not good for those that were benefiting unfairly wouldn't compete.

And I wouldn't be able to compete in a fair marketplace.

So as a result, we also decided to launch OpenPath, which basically gives publishers the ability to integrate with us directly. Now I just want to be emphatically clear here, this is not us getting into the SSP business. At the core, an SSP is providing yield management, trying to give publishers the highest yield possible, and they typically are trying to manage a large chunk of their inventory.

As a result, we also decided to lodge opened it up which basically gives publishers to the ability to integrate with us directly. So I just want to be emphatically clear here. This is not us getting into the SSP business.

At the core and SSP is providing yield management tied to give publishers the highest yield possible and they typically are trying to manage.

A large chunk of their inventory.

What we're doing is we're enabling them to innovate with us directly so in the cases, where we want to bid.

They will get that bid directly to them and then they can compare that to their other sources of demand. So that they can do their own yield management. We expect this will often be the case with very large publishers and we think that we will have a very positive effect on the state of the supply chain and both CTV and especially in journalism.

We expect this will often be the case with very large publishers, and we think this will have a very positive effect on the state of the supply chain in both CTV and especially in journalism.

Wanted to start with journalism, because that was the one most effected by header bidding for the positive.

In some ways most negatively affected by all the changes that have happened.

On the supply chain and the fight that's happening over identity.

Meanwhile, there's all of these journalistic outlets that are trying to monetize as optimally as possible. And with all these views over identity, including many of which that are dependent on mobile apps, they need high CPMs to just stay and visit.

Meanwhile, there are all of these journalistic outlets that are trying to monetize as optimally as possible and with all of these skus over identity, including many of which that are dependent on mobile apps.

<unk> high CPM to just stay in business.

So we're so excited that what this represents at launch is 70% of the newspaper readership in the United States.

So we're so excited about what this represents at launch is 70% of the newspaper readership in the United States.

between Reuters, Washington Post, USA Today, Hearst, Conde Nast, Tribune, and just many, many others.

Between Reuters, Washington Post USA today, Hertz, Honda NFS Tribune, and just many many others.

We think this represents just a huge lifeline to the journalistic community.

We think this represents a huge lifeline to the journalistic community.

I do want to just underline one more time, there is nothing more important to us than preserving our objectivity.

Do you want to just underlying one more time, but there is nothing more important to us in preserving our objectives.

That means that we're in this for the buyer. We're representing advertisers and agencies in the decisions that we make. That will continue. We're just willing to transmit that bid directly to the content owner when it's possible and when they want that. And as a result, we think that creates a more effective supply chain and gives more momentum to the open Internet that is largely being fueled by the connection.

That means that we're in this for the buyer, where representing advertisers and agencies in the decisions that we make that will continue we are just willing to transmit that bid directly to the content owner.

When it is possible and when they want that.

And as a result, we think that creates a more effective supply chain and gives us more momentum to the open internet that is largely being fueled by the connected TV.

Thank you. Your next question is coming from Tim Nolan from Macquarie. Your line is live.

Thanks very much. I'd like to turn back to the CTV topic if I could Jeff you mentioned the upfront markets coming up

Thanks, very much I'd like to turn back to the CTV topics, if I could Jeff.

and your role in the digital up front. So I wonder if you could talk a bit more about maybe the up fronts in general. I think it's not just digital and sort of what you're doing with the network groups and the agencies in that process. Relatedly, could you address the availability of that impressions in CTV, which I guess have fluctuated over the years from being in short supply to being more plentiful. Maybe what is the current state overall and within all of these.

You mentioned, the upfront markets coming up and your role in the digital upfront I Wonder if you could talk a bit more about maybe the upfront in general I think it's not just digital and sort of what youre doing with the with the network groups and the agencies and that process Relatedly could you address the availability of AD impressions in CTV, which I guess have fluctuated over the year.

Ours from being in short supply to being more plentiful maybe what is the current state overall and within all of these.

Measure CTV more effectively would be great. Thanks.

You bet. So first, I'll just say I've never been more bullish on CTV than we are right now. And that's in large part because of all of our partnerships with the content owners. And again, just...

You bet so.

First I'll, just say I've never been more bullish on CTV then than we are right now and that's in large part because of all of our partnerships.

With the content owners.

as we've integrated with them directly more and more as time has gone on. And as we've seen them grow, as we've seen them test.

And again just.

As we've integrated with them directly more and more as time has gone on and as we've seen them grow.

As we've seen them test.

As Bob and hybrid models.

Seeing more and more a move towards a board.

Yes.

I think the third part of your question, which is about.

What's happening to the inventory.

It started out that most of us that are consuming.

And I am speaking.

Consumer for a minute most of us did our consumption.

on Amazon and Netflix, S-Pod operating.

<unk> and Netflix.

And then over time we were introduced to things like Hulu and now so many others that are AVOD or hybrid like in Hulu's case.

<unk> offerings.

And then over time, we were introduced to.

Things like Hulu now so many others.

R R.

Or hybrid.

Two of those cases.

And as we've learned from so many of them.

Often a better way for them to monetize to be an Eva company and it also is what the consumer typically prefers.

Hulu is case, 80% of consumers prefer the ads.

Now some of that has been a phenomenon for many years, but that predates what I'll describe as what is now peaking, which is subscription to the internet.

No.

Some of that has been a phenomenon for many years, but that pre date, what I'll describe as well.

Now, peaking which is subscription fatigue.

And so that was true at Hulu many years ago. It's still it's even more true today, but because of course there's more subscriptions, it takes more work to figure out where to watch, but you want to watch it is. And for the average American household to be paying for 15 subscription.

So that was true of many years ago, it's still it's even more true today, but because of course, there's more subscriptions.

Takes more work to figure out where to work, but you want to watch is.

For the average American household to be paying for 15 subscriptions instead of two or three that they were a few years ago.

The cost is prohibited.

Insert Avon and now all of those companies are graded.

Subscribers, how many subscribers do they get.

And just some pretty impressive numbers across the board.

from many of them as we've watched how they reported on their last year.

And many of them as we've watched.

They reported on their last year.

But in order for them to keep those subscribers, they have to make it affordable.

But in order for them to keep those subscribers they have to make it affordable.

So we expect to see more and more of them adopting advertising. They need that to be relevant so that they show fewer ads that are more relevant to the user so that they keep an amazing experience for the consumer. But then the consumer can also afford it. So I believe strongly that the most promising part of our future is in CTV because of those market dynamics. Now to the last part of your question.

We expect to see more and more of them adopting.

Advertising they need that to be relevant so that they show a fewer ads that are more relevant to the user so that they keep an amazing experience for the consumer.

But then the consumer can also afford it.

So I believe strongly.

Oh excuse me that the most promising part of our future is in CTV because of those.

Dynamics.

Nonetheless part of your question about Upfronts.

Basically for those of you that are unaware upfront process.

Used to happen as everybody would come together.

At certain seasons of the year to buy all the adds on an upfront basis and you would try to bet on the shows that you thought were going to be successful.

The model was really.

Bill before there was anything digital and when there weren't that many content company.

But nevertheless, there still is this desire to go to an event or an upfront event.

<unk>.

But nevertheless, there is still a desire.

To go to.

Events are upfront.

Schedule.

Get some set the plan for the rest of the year and get some sense of inventory to make commitments, where some big advertisers can use their size.

To get.

<unk> deal. If you will and then publishers are willing to trade that better deal for assurances that theyre going to get spent.

But what's increasingly brought into the equation is the need for audience and data. And that's not really conducive to just signing an insertion order or a contract that sells all the inventory to one company. You need to put your audience data to work. You need real-time decisioning because you don't really know who's going to be watching, what the characteristics are. And so as a result, more and more of those upfront discussions are bringing us into the middle between those two entities.

But what's increasingly brought into the equation is the need.

Our audience and data and Thats, not really conducive to just signing an insertion order or a contract that sells all the inventory to one company you need to put your audience data to work you need real time Decisioning, you don't really know who is going to be watching what the characteristics are and so as a result, more and more of those upfront discussions.

Are bringing us into the middle between those two entities. So that we can enable better decisioning and higher CPM for the publisher and of course better decisions for.

so that we can enable better decisioning and higher CPM.

for the publisher and of course better decisions for the advertiser.

For the advertisers.

So we're very encouraged by the invitation to the upfront by the type of deals that are being struck.

By how often audience and full data Decisioning is now being brought into upfront discussions, which we believe are going to transform the upfronts and years over the next few years.

But that's all good news for US is good news for Decisioning. That's good news for CPM and that's good news for the for the TV landscape, which is getting more and more competitive and gravitating more and more towards <unk>.

Thank you. Your next question is coming from Yousif Squali from Truist Securities. Your line is live.

Thanks, Tim.

Thank you. Your next question is coming from Youssef Squali from true Securities. Your line is live.

Thank you very much. Jeff, congrats on the consistent performance. Two questions, please. For Unified ID 2.0, you're clearly getting a lot of adoption within agencies, within streaming media networks, etc. Can you maybe speak to adoption within the large advertiser base? Maybe anything to share in terms of adoption within the top 100.

Thanks very much.

Jeff Congrats on the consistent performance two questions. Please for unified I'd to that how you are clearly getting a lot of adoption within agencies within streaming media networks et cetera could you maybe speak to adoption within the large advertiser base, maybe anything to share in terms of adoption within the top 100.

Can you give maybe examples of how they're actually using it? And on Solomar, thanks for some of the metrics you shared. But can you maybe share some additional color on any learnings from the upgraded terms of the customer experience and maybe the lift in spend relative to either the previous platform you had or even relative to your expectation?

Can you give maybe examples of how they're actually using it and on solid Maher.

For the.

Some of the metrics you shared but can you maybe share some additional color on.

Any learnings from the upgrade in terms of the customer experience and maybe the lift in spend relative to either the previous platform you had or even relative to your expectations.

You bet. So first of all thanks for.

The question excited to talk on both of these topics. So first.

Yes.

I was prepared to answer a question like this by saying something like as I look back on last year I don't think the momentum could have been any better.

But now that I look at today's announcement from from from Google.

I expect this to help our momentum. So when I say momentum, it couldn't have been any better, given all the macro environment. It couldn't have been any better then, but it's going to be even better now.

I expect that to help our momentum so when I say momentum couldn't have been any better given all of the macro environment kind of it any better that but it's going to be even better now.

So, you know, our January avails with UIDs present reached an all-time high in January . We continue to grow rapidly outside the United States and we're just partnering all over.

So.

Our January .

Avails with new ideas present reached an all time high in January we continue to grow rapidly outside the United States and we're just partnering all over the place.

with those that create infrastructure for the Internet.

With those that create infrastructure for the Internet.

Many people adult I think properly understand our value the partnerships that we have when we partner with companies like a <unk> or a snowflake that are providing infrastructure from the internet.

Many of the largest advertisers on our platform are now transacting on new IV or are in the process of implementing some of our does make that much much easier to implement and open path will have a huge impact just accelerating UAV as well because as we integrate directly with many of the publishers.

Course.

Teekay will include.

Both capabilities.

to of course implement UID so that we can provide more data driven advertising that provides higher CPM.

And some amount of encouragement.

Of course implement UAV.

So that we can.

Sure.

Provide more data driven advertising that provides higher CPM.

We're seeing significant increases around the world, maybe most notably in APAC, but the numbers are just...

Where we're seeing significant increases around the world maybe.

Most notably.

In APAC, but the numbers are just.

very impressive at this point. We're on over billions of devices. So with the footprint that we have today, we're incredibly encouraged and then with...

Very impressive at this point.

Billions of devices.

So.

With the footprint that we have today.

We're incredibly encouraged and then with the.

sort of other external pressures on other players and the discussion on privacy and antitrust. Those are actually creating secular tailwinds for UID.

And sort of other external pressures.

On other players in the discussion on privacy antitrust those are actually creating secular tailwind for you I need to.

As it relates to Solomar, amazing attraction as well. I had hoped—

As it relates to solve our amazing traction as well.

I had hoped.

We would have the majority of our impressions on it by this.

Or at least by the end of this quarter, we did it last quarter. So now over 50% of impressions are bought on solar Omar we expect over 100% by the end of the year.

And I think that could even come sooner if things go really well.

But we are looking at 100%

But we are looking at 100%.

of impressions bought on our new product or on Solomar before the end of this year.

Of impressions bought on our new product or on solar more before the end of this year, so pretty amazing transition.

So pretty amazing transition given we just launched that on 7.7.

Given we just launched that on 77.

But that's great and it makes it so that we have a better user experience and we think that we have more stickiness because that experience is also just much easier for people.

That's great and it makes it so that we.

Have a better user experience.

Think that we have.

More stickiness because of that experience is also just.

use and make decisions. But it also is driving more data usage where that's the number of data elements applied to each impression is more than doubled. There's more usage of COA, which is our AI and ML, where adoption is now over 90%. The average number of channels is increased by 50%. So channels being things like mobile, display.

Much easier for people to.

To use an <unk>.

Decisions, but it also is driving more data usage, where that's.

CTV Vinny.

Video audio and so when you see that increased by 50% what youre seeing is people being holistic in a way that they are buying.

And for the first time ever we're doing I think unprecedented work in comparing apples to oranges and the media landscape and then just seeing a massive increase and first party data usage and that has encouraged as well is enabled by <unk> as well.

No.

I expect <unk> positive impact on <unk>, which was already going incredibly well I expect open path to have a positive impact and I expect Google.

<unk> most recent announcements also have a positive impact.

So really both of those things are some of the brightest spots of our 2022 ahead.

<unk> two.

Sure.

So really both of those things are some of the brightest spots of our 2022.

Thank you.

Thank you. Your next question is coming from Laura Martin from Needham. Your line is live.

Thank you. Your next question is coming from lower Martin from Needham Your line is live.

Good morning, can you hear me okay, Jeff? We can. How are you, Laura? Hi, I'm great, Jeff. Thanks. So the question I've gotten more frequently this morning after you guys reported earnings above CTV.

Good morning can you hear me Okay. John if we can how are you Laura.

Hi, I'm great job. Thanks, the other question I've gotten more frequently this morning. After you guys reported earnings.

So you've said a couple of times that CTD is growing faster than driving your growth. So the question then becomes,

So you've got a couple of times that CTV is growing fastest in driving your growth. So the question then becomes we grew your total year revenue of 42%, but the fourth quarter, 24% does that mean that CTV growth essentially harm and any kind of metrics you can give us.

You grew your total year revenue at 42%, but the fourth quarter 24%. Does that mean that CTV growths essentially have?

and any kind of metrics you can give us. How big is CTV today as a percent of your total revenue?

Any kind of clarity you can give us around CTV size and momentum and whether it's slowing CPM. Love that. Second business model housekeeping item.

Vegas.

Today as a percent of your total revenue.

Any kind of clarity you can give us around.

Size and momentum whether it's flowing through.

Love that second business model housekeeping item very excited about the data marketplace you talked about a lot today My question is.

Very excited about this data marketplace you talked about a lot today. My question is...

Do you have a rev share like Android does of the data that's bought on your platform, or are you just getting more spend on your platform and that's how you're making more money from implementing that data marketplace? Thanks Jeff.

Do you have a Rev share like Android does the data that spot on your platform or are you just getting more spend on your platform and Thats, how you are making more money.

You bet, and I'll take a first crack at the both questions and then if Chris or Blake want to add anything on the numbers.

Thanks, Jeff.

You bet.

I'll take <unk>.

First traffic.

Bulk questions, Chris or placement of add anything on the on the on the numbers.

You know, we don't break out any of our channels specifically as a total. I will say that CTV is definitely growing faster than the rest of our business. And I do believe CTV growth is leading the way. There's some unique things about comps and whatnot that I think they can talk about, but I don't think that's indicative of the growth of our business or the growth of CTV. So thank you very much, everybody, for figures and figures that I've Wish I had. Have another good Boomer and get in there and there's achant to say how much better is CTV growing than CTV? Okay, here we go. There's one hot thought here, which probably is in a much better day. Because CTV is Oscar in this room is probably my favorite, but I think you should really thank CTV for not having eightTER and reading CTV on the first coupling between them just because they're expensive

<unk>.

We don't break out any of our channels specifically is as a total I will say that CTV is definitely growing faster than the rest of our business.

So I'm not certain that that comparison gives you any insight into the business or...

So I'm not certain that that comparison gives you any insight into.

As it relates to the business model on our data marketplace, we do make money on the data that gets purchased.

Into the business or CTV, specifically as it relates to the.

The business model.

On our data marketplace, we do make money.

On.

So it's not just about creating spend in media. We make money on all forms of spend, meaning whether they buy media or whether they buy data.

The data that gets purchased.

It's not just about creating spend in media, we make money on all forms of spend meaning whether they buy media or they buy data.

So we are incentivized to to get data to be used more often but of course, what we do is create models. So that we never use the data and let it is mathematically obvious to create benefit.

And so what that has enabled is us to constantly be doing work to make certain that we're adding more value than we're extracting.

For the advertiser and so.

What's that.

What that has enabled us to constantly be doing work to make certain that we're adding more value than we're extracting.

That's actually one of the reasons why I'm so bullish about the changes that we've made to the data marketplace. We are creating way more value for the advertiser.

It's actually one of the reasons why I'm, so bullish about the changes that we've made to the data marketplace as are we.

We are creating way more value for the advertiser.

Now on unit economics, we don't expect that to change so in other words I don't expect our take rate meaningfully change.

Either direction positive or negative as a result of this but I do expect expect the flywheel spin faster.

Would you make money on data however.

We're encouraged to either put it towards working media put it towards data, but we better earn our keep which is exactly what our clients want from us. The fact that we are using more data just means that we are using that data in an intelligent way to make certain that the.

incremental usage is worth it to the advertiser. The fact that's working across the board, I think, is actually separating us from the past with everybody else, in part because we have that objectivity and alignment with the average.

And then Laura, I'll just pull on really quickly on top of Jeff. I think when you think about this from a comparison perspective, the Q4 results of the 24% revenue growth, they're comparing it again.

And then Laura I'll, just really quickly on top of Jeff I think when you think about this from a comparison perspective, the Q4 results of the 24% revenue growth or comparing against our hardest comp from last year because of the U S election, which was.

High single digit share of our spend so when you exclude that election spend Q4 actually accelerated year on year from 34% up to 36% in Q4 'twenty. One so really encouraged by that because Q4 of 2020 also besides the election comp we had a kind of a.

So really encouraged by that because Q4 of 2020 also besides the election comp.

we had a kind of a pretty big flush recovery that came out in Q4, so we were pretty excited about that. And then with regards to the kind of weight or the...

Pretty big flush recovery that came out in Q4, so we're pretty excited about that and then with regards to the kind of wait to the mix video, including CTV and mobile each represent around 40% share of the business and then display and audio represent about 15% and 5% needs such as <unk>.

Some idea of that mix going forward. Thanks.

Thank you. Your next question is coming from Tom White from DA Davidson. Your line is live.

Thanks, Laura.

Thank you. Your next question is coming from Tom White from D. A Davidson your line is live.

Great guys, thanks for taking my question and nice results. Just on the Open Path announcement, can you elaborate maybe a bit more on the future of that strategy?

Great guys. Thanks for taking my question and nice results.

On the open path announcement can you just elaborate maybe a bit more on the future of that strategy.

You know, for example, does it you see it going beyond just the web and maybe into other channels like mobile or CTV and then maybe for Blake, maybe comment on the impact to your financial from the strategy over time. Just curious about, you know, how we should think about maybe savings on infrastructure costs and maybe possible revenue capture from the publishers that participate. Thanks.

Yeah, so as it relates to Open Path, we definitely see this as extensible into CTV, which we've already indicated will happen. But also potentially into mobile. So I think increasingly publishers are interested in cleaning up the supply path.

Thanks.

Yes, so as it relates to open path.

We.

Definitely see that.

Extensible into CTV.

As we've already indicated will happen, but also potentially into mobile.

So I think increasingly.

Publishers are interested in.

Increasingly advertisers are interested in cleaning up the supply path. And you know we've always looked at it as we have to earn our keep and everybody in the supply path does. And we just want to make it so that the market can be as efficient as possible because the open internet in order to compete with the walled garden strategy has to be operating efficiently.

And cleaning up the supply path.

Increasingly advertisers are interested in cleaning up the supply path.

And we've always looked at it is we have to earn our keep and everybody in the supply path.

And we just want to make it so that the market can be as efficient as possible because the open internet in order to compete with the walled garden strategy.

Has to be operating efficiently that requires a bit more moving parts, but thats a better global economy, that's better ecosystem, that's a better internet for the world.

And in order for us to enable that we think we have to continue.

To enable direct integration win content owners and publishers want to do their own yield management I think that's it.

I think it's really important that you highlighted CTV because nowhere is it more true that content owners want to do their own yield management than in CTV.

Really important that you highlighted CTV because nowhere is this more true that content owners want to do their own yield management than in CTV.

But I do want to underline that we are not trying to become an SSP. We are not getting into yield management. That is a job of an SSP. Or in the case where constant r is less than or equal to zero.

I do want to underline that we are not.

Trying to become an FSP, we are not getting into yield management.

Job of an SSP or in the case, where customers want to do it themselves.

of course their job. But that's something that we believe in order to protect our objectivity, we should stay out of what we expect to do for as far as...

That's their job.

But.

That's something that we believe in order to protect our objectivity.

We should stay out of which we expect to be there for as far as we can see in the future.

And just to follow on and even try to be more clear, we expect no material impact to the P&L or our take rate from this. Like Jeff said, there's opportunities to spin the flywheel that we're excited about in the support of the open internet. We don't have any incentive to steer purchases and we're not doing yield management. We continue to represent the by-fives in what we do and so no material impact on the P&L side.

Just to follow on and even tried to be more clear, we expect no material impact to the P&L or our take rate from this like Jeff said like there's opportunities to spin the flywheel that we're excited about and the support of the open Internet. We don't have any incentive to steer purchases and we're not doing yield management as we continue to represent the <unk>.

By size and what we do and so.

No material impact on the P&L side.

Thank you. Your next question is coming from Brent Thill from Jefferies. Your line is live.

Thanks, Tom.

Thank you. Your next question is coming from Brent Thill from Jefferies. Your line is live.

jeff everyone would love to hear your perspective on the international opportunity i know you put a lot of investment in time

Jeff everyone would love to hear your perspective on the international opportunity I know, you've put a lot of investment and time.

Trying to crack the code there.

Is your view, there and Blake can you.

Any thoughts you have on that side. Thanks.

Thank you. Yeah, I'm very excited about the international prospects. You know, I'm always, I start macro, which is...

Thank you, yes, im very excited about the international prospects. So I'm always I start macro which is where a few years away from being at that trillion Tam.

You know, we're a few years away from being at that trillion dollar TAM and roughly 60 plus percent of that is outside of the United States or outside of North America. So of course, in terms of patch work, consumer money is getting put in that well now acre use. So whose basis are you looking at? What am I looking at? What are you looking at? What are you prioritizing? All right, what is your motivation for a year? I know I learned that, as you mentioned today, for our

Roughly 60 plus percent of that is outside of the United States or outside of North America.

We want to capture that opportunity and because we work with the biggest brands in the world who advertise all over the world They don't want you know 200 DSPs but I think in the way that we use these as partners

So of course.

We want to capture that opportunity and because we work with the biggest brands in the world, who advertise all over the world and they.

They don't want.

200 DSP.

they would like one to take them all over the world and especially to use their learning in any market to benefit.

As partners.

They would like one to take them all over the world and especially to use their learnings.

In any market to benefit all the other markets.

And so, as of course you know, our focus has been on expanding CTV.

So as of course, you know.

Our focus has been on expanding in CTV.

all over the world. CTV more than doubled across APAC. CTV and EMEA grew by more than 4X in 2021.

All over the world.

<unk> more than doubled across APAC CTV in EMEA grew by more than Forex in 2021.

Shanghai and Hong Kong have been driving our growth in northern Asia Pacific. And just some amazing partnerships across APAC with Samsung smart TV devices now reaching over 50 million viewers and that's having access there. Xiaomi in India or Disney plus hot star in India.

Shanghai and Hong Kong have been driving our growth in Northern Asia Pacific and just some amazing partnerships across APAC, but Samsung smart TV devices, now, reaching over 50 million viewers and Thats, having access there Jeremy.

In India, our Disney plus Hot Star in India.

You know, again, China was our fastest growing office, again, which

<unk>.

Again.

China was our fastest growing office.

You know, when the numbers are small, that's less significant, but when you do it over and over again, it continues to be especially significant. Especially when you look at China and just say that's the second largest media market in the world. It's roughly half the size of the U.S., but it's growing at twice the pace.

Again, which.

When the numbers are small.

Significant but when you do it over and over again it continues to be especially significant.

Especially when you look at China, and just say that the second largest media market in the world.

Roughly half the size of the U S, but it's growing at twice the pace.

So with that being true.

So unlike many other.

Non China based companies who've been hurt by trying to go into market in China.

We come to the market, mostly with a focused spend.

In market.

Then.

Could you extension, where Chinese brands.

<unk> products will reach all over the rest of the world, which of course, they want more distribution.

So I'm very encouraged by the fact that we've seen all this growth in those areas.

So I'm very encouraged by the fact that.

We've seen all this growth in those in those areas.

But I can't underscore enough how important it is for us to continue to lead in CTV. We believe we've done that in the US and we proved that in the US and Australia, arguably years ago in 2020. In 2021, I think we started to show amazing green shoots across other markets in EMEA, most notably in the UK and Germany.

I can't underscore enough how important it is for us to continue to lead in CTV. We believe we've done that in the U S and we prove that in the U S and Australia.

<unk> years ago in 2020, and 2021 I think we started to show amazing Green shoots across other markets in EMEA, most notably in the UK and Germany.

So with all of the progress of CTV around the world and the pressure on content owners, that is sometimes slightly different in other markets, but the general trend that is happening in the US is happening there too, just with slightly less content.

No.

With all of the progress of CTV around the world and the pressure on content owners.

Sometimes it's slightly different than other markets, but the general trend that is happening in the U S. Thats happening there too just with slightly less content, but that makes it even more valuable in some ways. It makes the ads more scarce, but it makes auction dynamics.

But that makes ABOT even more valuable. In some ways it makes the ads more scarce. But it makes option dynamics and real-time pricing even more valuable for those markets, which we think then just lends to our business model. So we expect to continue to lead in CCB.

And real time pricing, even more valuable for those markets, which we think Ben just lends to our business model. So we expect to continue to lead in CTV around the world.

Then the following up on your 2-4 question, you know, the quarter was fundamentally really strong. We had the hardest...

And then the.

Following up on your Q4 question.

<unk> was fundamentally really strong we have the hardest comp that in a long time.

that in a long time in Q4 comparing Q4 to 20.

No supply chain issues to call out at all I think another <unk>.

20 and 21, Q4 was faster than the full year.

for us. And so it just goes to the strength and the momentum that we've seen in that, you know, we've now kind of disclosed now into our guidance.

Kind of disclose now into our guidance. So we're really excited about.

Thanks.

Thank you. Our final question comes from Matt Swanson at RBC. Your line is live.

Thank you. Our final question comes from Matt Swanson RBC. Your line is live.

All right, thank you guys so much for squeezing me in here. I'll ask two quickly. The first for Jeff, thinking about ramp time for Shopper Data in kind of two ways. One, as far as how long it takes a partnership, like what we're seeing with Walgreens to come together. And then also on the Walmart side, the milestones you're thinking of how that's going to ramp over time. Right?

Alright. Thank you guys. So much for squeezing me in here.

US too quickly the first for Jeff thinking about ramp time for shopper data and kind of in two ways one as far as how long. It takes a partnership like what we're seeing with Walgreens to come together and then also on the Walmart side. The milestones you are thinking of how that's going to ramp over time, recognizing it's early.

recognizing it's early. And then for Blake, Q1 guidance is really strong, the 38% growth, you know, even accelerating off the adjusted 36%.

And then for Blake Q1 guidance is really strong the 38% growth you know you've been accelerating off the adjusted 36% I guess the two things. We one you mentioned a really strong start to the year. If you want to elaborate at all on that and then is there anything from a seasonality standpoint.

I guess the two things we won, you mentioned a really strong start to the year. If you want to elaborate on that. And then is there anything from a seasonality standpoint when we're trying to maybe make an inference to a full year number that you would point out as being different or special in 2022? Thank you.

What we're trying to maybe make an inference.

Full year number that you would point out as being different or special in 2022. Thank you.

First of all, thanks for the question, Matt. The pace of ramp up in shopper marketing data or retail data is largely dependent on the strategies that we deploy and of course we agree on with the retailer and then their ability to move back.

Well first of all thanks for the question.

So.

The pace of ramp up and shopper marketing data our retail data.

It's largely dependent on the strategy that we deployed and of course, we agree.

But with the retailer.

So, you know, it often takes some time because...

And then their ability to move fast.

I just want to highlight on this point is that especially brands, especially advertisers who are in the business of creating long term relationships with consumers. They don't want to set up consumers don't want them to be upset with them.

They don't want to piss off consumers. They don't want them to be upset with them. And so as a result, they're trying to make very deliberate choices so that they can provide the very best.

And so as a result, they are trying to make very deliberate choices. So that they can provide the very best to consumers.

That of course is bringing them personalization while of course at the same time respecting privacy.

Of course.

As bringing them personalization while of course at the same time respecting.

in order to set up those structures and then also to create the right economics that can be very different from partner to partner, partly because of their agility, but also because there's a whole bunch of different ways to deploy that insight.

Privacy in order to set up those structures and then also to create the right economics.

Can be very different from partner to partner.

Partly because of their agility.

But also because there is a whole bunch of different ways to deploy that insight.

It all, I think at end state, looks very similar.

It all it all I think it.

which is people are trying to leverage their data so that every advertiser is optimizing to selling product in that store, whether it's Walmart or Walgreens or those that are part of an object anything that some apps don't give access to. Let's call it that before we get into ex Freemassets there.

It looks very similar.

People are trying to leverage their data so that.

Every advertiser is optimizing to selling product in that store, whether it's walmart or walgreens or those that are next.

And that is very good for the retailer and that is providing end-to-end measurement That is more difficult to find in other environments, especially the walled gardens Where they are doing sort of measurement on their own without validation

That is very good for the retailer and that is providing end to end measurement.

It's more difficult to find in other environments, especially the walled garden.

Were there any sort of measurement on their own without validation.

And so that holy grail of end to end measure.

That Holy Grail of end to end measurement.

is coming from many retailers and the pace at which that is onboarded is up.

It's coming from many retailers and the pace at which that is onboard it is up to them.

And then, Ruth, with regards to your Q1 question, Matt, yeah, strong start to the year, it's broad-based. I don't have anything unique to call out with regards to any single area to highlight. I think that it's just momentum we've seen in January that has continued into early part of February so far. And just the many positive trends for this business, which you hear us speak to a lot, just tend to continue, which is CTV's leading the way. We have exciting...

And then Ruth regards to your Q1 question Matt.

Strong start to the year its broad based I don't have anything unique to call out with regards to.

Any single area to highlight I think that it's just momentum we've seen in January that has continued.

Early part of February so far and just the many positive trends for this business, which you hear us speak to a lot of just tend to continue which is CTV is leading the way we have exciting international opportunities the shopper marketing marketing opportunity as well you've heard about so lamar ramping your IV scaling.

marketing opportunity as well. You've heard about Solomar ramping, GIB scaling, and so just all those tailwinds I think.

you know, drove us essentially to that guide on the 38% year-over-year growth, which does represent the acceleration that you called up from prior year. With regards to your seasonality question, what are some of the things that you're going

And so just all of those tailwind I think.

Drove us essentially to that to that guide on the 38% year over year growth, which does represent the acceleration that you called out from prior year with regards to your seasonality question.

Assuming no major disruptions like related to the macro environment. So if that's COVID-19 or if something from supply chain were too kind.

Kind of be activated it is possible that this year in 2022, and then 2023 start looking a little closer to how I would say the pre pandemic years looked in terms of seasonality patterns, but.

start looking a little closer to how I would say the pre-pandemic years looked in terms of seasonality patterns. But that said, every year is a little different. So if we're a few points better or worse for that, from a seasonality perspective, I wouldn't recommend reading.

That said every year is a little different so if we're a few points better or worse for that.

From a seasonality perspective, I wouldnt recommend reading into it too much.

Thanks, Matt, and thanks for everyone for joining today.

Thanks, Matt and thanks for everyone for joining today.

Thank you ladies and gentlemen. This concludes today's event. You may disconnect at this time and have a wonderful day. Thank you for your participation.

Thank you ladies and gentlemen. This concludes today's event you may disconnect at this time and have a wonderful day. Thank you for your participation.

Q4 2021 Trade Desk Inc Earnings Call

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