The Trade Desk made headlines this week when it raked in $45 million in debt financing and brought on Microsoft, RGM Group and Delivery Agent alum Gabe Greenberg to manage its Advanced TV division.
The company positions itself as both a DSP and a DMP, and its leaders have longstanding roots in automation, according to CEO and co-founder Jeff Green.
“We’ve been in programmatic from inception,” Green said, adding the company benefits from never having repositioned its business model.
“We were never an ad network and decided to become a DSP,” Green said. “Instead, we’ve always focused on being the very best buy-side platform. We think a buyers’ platform has to have both a DSP and a DMP. And our vision is to be across all channels.”
Green spoke to AdExchanger.
ADEXCHANGER: What drove The Trade Desk’s debt financing round?
JEFF GREEN: One element that drove this financing is the need to make sure that receivables are not a problem. Sometimes the big brands and agencies take longer to pay, so having debt to make sure we don’t have any working capital problems is fantastic. The other piece of this round of debt financing is about taking some cash and putting it on our balance sheet so we have some pretty massive additional cash reserves. We raised $20 million in the beginning of the year, and we still have almost all of that capital as well.
Important to note is that we’re profitable. You could contrast our company to one like Rocket Fuel, who spends something like $18 million or $20 million a quarter. In other words, they’re burning through nearly $100 million a year, while we’re profitable. All that debt it just to create additional room for us to grow, but it’s mostly about padding our balance sheet so we can do so with even more aggressiveness than in the past. (more…)