[Operator Instructions] And our first question comes from Shyam Patil with SIG.

Jeff, you described well the factors that you're seeing put pressure on the business from macro, pricing pressure, your own execution. If we shift to thinking about the remainder of this year, what are the top 2 or 3 priorities that you guys have to stabilize the business?

Thanks for the question, Shyam. So let me just first acknowledge that what we've shared in terms of our performance as well as our guide is below our expectations, and we don't think a reflection of the long-term potential. And I do worry that I -- that we don't want to overstate that while there are a couple of pockets that are under some amount of pressure, overall, the business is growing and overall, the -- every division or every sector that we represent of the economy, most of them are doing very well. And of course, we can't control the macro, but we're overall very positive. So in terms of the things that we can control and the things that I'm most excited about and that we have to get right in order to do well going forward. First, we have to upgrade Kokai. And we'll -- as I mentioned, we'll launch [ Zuma ] later this month. And this represents substantial platform usability upgrades and helps us get the best out of AI, which we've already added. Second, we just want to continue to innovate in some of our key products, and this is definitely not all of them, but some of them that we're most excited about and most focused on are our product and measurement, which just helps the biggest brands in the world see where incremental business outcomes are truly coming from. This will help us ascribe much better credit for what we're actually producing, which are, in most cases, dramatically understated today. We'll also ramp up Audience Unlimited. This has been in just early phases, but the early results have been remarkable. And to get that in the hands of a lot more customers, we think we'll just spin their flywheels even faster. Measurement will spin everyone's flywheel faster on the platform. Audience Unlimited will do the same, and both of them are just in the hands of very few customers today, and the results are extremely positive. We're also -- we've also been introducing the concept of enterprise Kokai, where we have some massive growth rates with companies who negotiate the features upfront and then use every one of our products. We sometimes do this through JBPs, where, as you might recall from our prepared remarks, we have signed over 200 JBPs through Q2, which represents 38% year-over-year growth. But JBPs grow at least this year at a rate 6x higher than overall revenue growth, which I just think might be the most bullish number that we can share and have shared today is that as we continue to double down on JBPs and getting closer to our partners and developing plans to grow well into the future that we see just a tremendous opportunity. To that end, we have a team that's just dedicated to growth, which, in some cases, is actually winning back customers that we've lost at some point. That team has grown their book of business over 250% year-over-year and is the fastest-growing individual team in our business development team. And of course, of the top 100 accounts, the majority of them are actually growing in double digits, again, just underscoring that most parts of our business are in a very healthy place. And then the last thing, and I can't overstate the importance of this. We have added an amazing number of industry leaders to our leadership team. And most of them have been here a very short period of time. And so we, of course, are giving them the room to get things up to speed and to continue to help accelerate our growth. But in order for us to get back to growth, we, of course, need to help them get back up to speed. And I look at that as important of any -- it is as important as any of the initiatives that I've talked about today. So we believe that all of these together, regardless of the macro environment, will position us to be even stronger and get back to more durable growth when the conditions change. Thanks for the question, Shyam.

The next question comes from Matt Swanson with RBC.

Jeff, I wanted to get your thoughts on something maybe a little more high level, kind of an existential question that I think is top of mind for a lot of investors right now in the age of AI. So I mean, as AI is kind of reshaping the digital advertising landscape, can you just give us some insight on kind of what gives you confidence in the DSP business model as we know it, remaining relevant over the next several years? Or what needs to happen to stay relevant?

Yes. I really appreciate this question. I think this is actually a very important theme for us to be talking about. So in order to talk about AI, let me just remind you of the backdrop. So first of all, supply outpaces demand by more than ever. So it is the ultimate buyer's market. And -- but in order to take advantage of that buyer's market, you have to compare every ad opportunity to all the others and of course, that is an amazing job for AI because we're looking at 20 million ad opportunities every single second. This decisioning, and it is very important to understand that the job of a DSP, like what actually is a DSP in order to -- to answer your question, we, of course, have to be super clear on what we're even talking about. But a DSP is a platform built to decide which of those impressions you buy and which you don't. And of course, that is enhanced by AI. And that's why we've been investing in AI for years. So I wouldn't say that the DSP model, if you will, is going to be disrupted by AI. It is AI. And what's really important is as we enter into the new phase, and this is part of the reason why we spend so much time talking about objectivity is that you have to get the biggest brands in the world to trust you with their data and then reassure them that you are going to preserve their data so that their insights from buying are put to use for them and exclusively for them. And most of the biggest platforms in the world are not doing that. They are asking the biggest brands in the world to give them their data and then they use that for all of their clients and especially their competitors. So we view this -- the injection of AI is not a question or not a disruption, but in fact, the very essence of what it means to be a DSP. That said, I just want to also add that I think Agentic, is one of the biggest opportunities that advertising will ever see. It is a huge opportunity for us. We are already seeing massive advantage from it. Some are using Agentic to just build yesterday's business model all over again, if you will. They're building ad networks out of agentic like technologies. That's not going to work because it doesn't leverage the very best of decisioning, which is what a DSP does. So not only do I not think AI will disrupt the DSP model, if you will, or will there be DSPs, the only winners left will be people that leverage or platforms that leverage AI to lead them into the next chapter of this race. Thanks for the question.

The next question comes from Vasily Karasyov with Cannonball Research.

My question is for Nate. Given the outlook for Q3, which I think also means that weakness will persist into Q4, at least as well, how should we now think about your long-term profitability framework, how you approach that side of the business given the revenue trajectory? And what's your philosophy in terms of investment internally? Would appreciate your thoughts on this.

Yes, sure. Thank you for the question. Listen, I think we have a very long-term focus and continue to see great opportunity to drive long-term growth and profitability. I think in terms of the investment philosophy, as mentioned in the prepared remarks, we're going to invest with conviction in areas where we see attractive returns. I think importantly, we will be equally disciplined everywhere else. So we'll apply a lot of rigor to how we evaluate investments and then allocate resources. And I think if we do that well, we believe that we can drive stronger long-term growth and profitability. So stay tuned as this work progresses, we'll keep you updated on our long-term profitability framework and overall operating objectives.

Next question comes from Justin Patterson with KeyBanc.

Great. Jeff, I know you don't disclose take rate, but I'm curious how your pricing philosophy is changing in response to brand advertiser needs in the environment. As we look at stabilizing the business, how are you thinking about the right level of pricing and take rate from here?

You bet. Thanks for the question, Justin. So first, in order to answer this, I just need to give you a little bit of history. And I'll just start with the very first time we brought all of our employees together when we had them spread across continents for the first time. I remember one of the primary presentations that we gave to our own employees was it is not our goal to be the cheapest platform. It is our goal to be the best. That has definitely been our mantra for more than the last decade. If you look at us as a publicly traded company and you just scrutinize the take rate more or less over the last decade, the take rate has gone up 5 of the 10 years and it's gone down 5 of the 10 years. And the reason why it stayed within a few points of that middle line, if you will, is because we started by saying everything about our product has to earn its keep. It has to earn its keep on both a relative basis and absolute basis, meaning -- and the absolute being the starting point, meaning that we need to make certain that if our product costs 10% it better add at least 10% more value than if it wasn't in the middle. And in fact, the more obvious you can make that mathematically, obviously, the better it is for us to go win customers. We've done extremely well over the last 16 years with that approach. That said, we've always looked at this as if we can grow faster or win more business by changing that price or changing the approach, we'll always look at it and always consider it. But we tried to do it in a way that it didn't make it too volatile because we always knew that we could lean on the fact that we were adding more value than we ever cost or extract. So we remain really confident in our business model and in our pricing philosophy. We have, of course, the opportunity to continue to improve on our platform. But I will say that over the years, even though the take rate has stayed mostly the same, we've introduced new products all along the way like Next Wave, Solimar, Kokai. We've added tons of AI capabilities over recent years. The price has not changed much since we introduced things like UID2 and OpenPath. All of those have created efficiencies and enhancements for our customers that we think ultimately add to the consumer surplus that we provide to our customers all the time. So we'll always be looking at it, always be looking for opportunities for us to grow and look for ways for us to simplify, where I do think is the biggest opportunity is for us to simplify the way that we price. But I don't think that the net number has to change dramatically because we're extremely confident that we're adding more value than we cost. Thanks for the question, Justin.

The next question comes from Youssef Squali with Truist.

Jeff, there seems to be somewhat of a disconnect between the opportunity as you presented in terms of growth across the various modalities and at least the short-term guide, which I think implies about 12% decline year-on-year for Q3. And I'm assuming that will probably sustain itself into Q4. Is there a way to kind of parse out the impact of what you control versus what you cannot? I think in your prepared remarks, you talked about 2 areas. One is macro, the other is execution. So any way to kind of help us maybe quantify both to kind of see what you can turn around even if the macro continues? And just very quickly, maybe just provide us an update on the status of your relationship with some of the big agencies, maybe the Publicis in particular.

Yes. So a lot to unpack in all those. So let me just parse between first, the things that we can control and the things that we can't. Obviously, we can control the things that we ship and the product that we put in market, and we, of course, can control the team. We spent a lot of time already on this call talking about how we've enhanced both. We've enhanced both our product and our team. And then, of course, we can look at all the ways that we're executing all the operations, all the things that we do internally, how we allocate resources and just scrutinize all of it and make sure it's all pointed in the right direction and pointed towards growth. That we're doing every single day with a higher degree of rigor than we ever have before. On the macro, of course, there are some places where there are just amazing secular tailwinds. There are parts of technology that have amazing tailwinds. Some of our pharma clients who have GLPs, they're all doing really well. There are a whole bunch of parts of the economy that are doing really well. And in fact, I would say most of them are. We made references to things that are affected by whatever amount of bifurcation is happening inside of the economy where lower income consumers are under some amount of pressure. And we definitely see in some of the brands that are targeted at products that are more toward that part of the market, where they're also seeing some pressures, not just in the CPGs, where, of course, that shows up, but -- and not just in the autos where some of that shows up as well. But in some of the other categories, that also shows up a little bit. But overall, those are doing very well. Of course, the macro isn't in our control. But because we're growing in so many other areas, we're extremely confident that we're focused on the right things. As it relates to your question about the agencies, I was actually hoping that this would come up because I think it's really important to note. We built this business on our relationship with the agencies. They've been a phenomenal partner to us over the years. All of them have been critical to our success. They're all in periods of transition right now. But overall, our partnership has been phenomenal with each of them, and that includes Publicis. They've been an important partner for us for over a decade. Of course, there were some public disputes about what was essentially a negotiation but that's behind us. And we have -- we've spent a lot of time on this call already talking about our Joint Business Plans. It's really important to me that I explain or express that Joint Business Plans with brands and strong agency partnership are not mutually exclusive. In fact, many of our brand JBPs are developed in collaboration with their agencies. So when we talk about that being one of the most bullish things that we're doing, that's in part because of better integration inside of the agencies and better partnerships. And then lastly, as it relates to the agencies, one of the things that we're doing together in many cases is working on white label products of both Audience Unlimited as well as agentic AI products. So when I put those in the road map as well, things that we can do with them to leverage their data assets as well as improve decisioning for them using agentic AI where they find efficiencies. And of course, we do too, and enhanced decisioning along the way. We didn't really have time in the prepared remarks to talk extensively about some of those investments and some of the advancements that we're making in agentic with our agency partnerships, but it's yet another reason to be really bullish about the future. It's going to take some time for those to pay off in meaningful ways, but that's part of the reason why we're being so deliberate about our own discipline as well as where we make investments. Thanks for the question.

The next question comes from Tim Nollen with SSR.

Jeff, you've had a lot of announcements about some management additions over the last year really, but especially even in the last month or so. And you mentioned this a bit in the prepared remarks. I wonder if you could give us a bit more color into what some of these people can bring to The Trade Desk. Some of these are high-profile names from some high-profile companies. Just wondering kind of what skills do they bring, what capabilities and how might they be able to affect some change at The Trade Desk.

You bet. So it's actually hard to answer this question partly because there are so many people, and they all have such different backgrounds and different expertise. And I also -- I feel like I'm trying to recognize so many people that we've added that we don't have enough time to actually talk about all of them and why I'm excited I'm nervous about leaving somebody out. But let me just talk about a couple of them that we've added of late that are directly impacting our go-to-market approach. So the first is Kristi, who joined us as Chief Commercial Officer. She really is leading, among other things, our data partnerships. She has a long history of having worked in building some of the very first retail media networks. She most recently was running all of advertising at Uber, managing a go-to-market team that's almost the same size as ours overall. Our org size here is much smaller, focused on the data partnerships because of how that will enhance Audience Unlimited, how that will enhance our measurement product. And those 2 things together, we look at as game changers. So does she. That's part of the reason why she's here. I talked about Ron in the prepared remarks, who also joins as a C-level in business development. Many of the conversations that we're having today are at much senior levels. And I talked about a minute ago, enterprise Kokai and selling that in at higher levels of the organization so that we get much longer adoption as well as much deeper integration into some of the biggest brands and biggest companies in the world. We need a greater ability to talk at the most senior levels of the org as well as to think about new deal structures. Ron had a role that was bigger than advertising at Amazon, where he did that very thing, looking at all the assets across Amazon, how can we create a more holistic partnership framework that are often custom I think Ron is one of the best in the world at this, and I'm super excited to have him on board. And then I'll just highlight one other, Vinny Rinaldi, who was the VP of Customer Experience at Hershey's and now joins us to do something very similar with Ron, which is Vinny might be one of the best advocates in the world for why people should buy the premium Internet. He was an advocate both at the agency that he worked at before as well as at Hershey's about not pursuing cheap reach. And he did a lot of analysis while he was leading media buying at Hershey's to show that cheap reach wasn't worth it, that user-generated content, while it appears to be on sale, actually doesn't even move the needle for brands like Hershey's. And because he's understood that and has been promoting the pursuit of premium and better measurement as an alternative to simple measurement and cheap reach, we are -- we've positioned him with a role to help us talk to the biggest brands in the world and do the very same things that he's done inside of brands himself. So those are a couple of the examples. Again, I feel bad for the number of people that I've left off of that, but those are the sorts of people that we're adding with the task at hand that we are extremely confident will change the game. It's quite important to recognize that, of course, in the numbers, especially in the forecast, we're trying to create room for them to get up to speed and make a meaningful contribution, and we're extremely confident that they will. Thank you.

Next question comes from Dan Salmon with New Street Research.

Okay. I have one for Jeff and then one for Nate. Jeff, can you just talk a little bit more about why you're confident that as you laid out an independent premium platform focused on objective decisioning that's really at the heart of your business, why that can continue to win market share when you've got walled gardens combining exclusive live sports inventory like what Amazon has with their DSP or bring really simple programmatic guaranteed style transaction with low pricing like what, say, Google's new Buyer Direct program looks like. Why does that independent premium platform continue to win share? And then just for Nate, can you maybe just provide a little bit more context around the assumptions in your Q3 outlook and just a little bit more on your overall guidance philosophy?

You bet. I appreciate the direct question. Let me just give, as always, just a little bit of context before I just get very direct. There will be many winners. There have to be. Otherwise, this whole ecosystem that we've created that is actually not that dissimilar from the stock market in structure. There's some massive differences in fungibility and probability of winning. But in terms of structure, it's fairly similar. And an auction with only one bidder isn't an auction. So it's quite important that we have a number of players and the fact that there are only a few of us that have reached meaningful scale is part of why we're so excited because there's a ton of TAM ahead and there's not that many players in the ecosystem. That said, we have, by far, the highest market share in the programmatic space, especially as we're looking at the open Internet. So it's just really important to remember that we're way ahead of our other competitors, especially when it comes to buying the open Internet. Because if you want to say, well, yes, but Google buys a lot of YouTube, I would say, well, I would hope so. And Amazon buys a lot of Amazon Prime and sponsored listings, well, I would hope so. They're the only place where you can buy them. So of course, they do. But at the end of the day, the reason why I believe why this model works is because, number one, in an AI-fueled world, you have to fuel those AI models with first-party data and you have to have the trust of the biggest advertisers in the world. You will not get that if you are not objective and not representing their interest and protecting their data for the long haul. I also think that this comes down to an issue of math, and there's 2 parts of this that are really important to understand. A lot of times in the press, and this is trade press as well as even in Wall Street, there's, I think, a misunderstanding about the effect of platform rates, especially given that where most of our competitors make all their money is by bundling it with the media. So it's not platform rate versus platform rate. So it becomes really important to aggregate that and say, because you can wrongly conclude if Trade Desk charges, let's say, 8% and our competitor charges 4%, then The Trade Desk has to be twice as good. But if you look at it as no, when you add that to the media, Trade Desk buys an impression for $1.08 and they buy a piece of media for $1.04, where the underlying media in both cases cost $1, did we buy a piece of media that was better for that brand? And that comparison at $1.08 versus $1.04 is meaningfully different. And then there's also the math that comes down to how they decide how to make money when you have something like YouTube, where their cost of goods sold is almost 0, and if they get $1, they can spend it on YouTube and keep the whole dollar or they can spend it on Disney+ and they keep $0.10. Well, of course, it would be better for Google or Amazon to buy their owned and operated inventory. That's what they do because they make more money that way. None of these companies are in the community service business, if you will. They're not giving things away. So when things come out as free, they are not really free. They're just moving the cost somewhere else. So we're extremely confident that objectivity matters more today than it did yesterday, and it will matter more tomorrow. In an AI world, the premium on trust is going up, not down. People are looking for partners that they can trust. And I think you're going to see over time, more and more of a separation between those that align their interest with their clients and those that don't. It doesn't mean that those companies can't have great products. It doesn't mean that they won't have an ancillary business. But at the core, they are selling owned and operated inventory. Both of them make most of their money from their owned and operated inventory. I don't think any of us foresee that changing in any dramatic way in the future. We do believe that decisioning, especially when, unlike the stock market where if you buy stocks at random, you can still often do pretty well. If you buy media at random, you will get your a kicked every single time. So it becomes quite important that the decisioning engine that we have to help our customers, the biggest brands and biggest agencies in the world make decisions, that we give them the tools that leverage the objectivity that protect their data, that leverage AI to make the very best decisions possible and then also give them measurement and audience insights that make it so that they are truly proving the incrementality. It's that last piece where I think we've missed a little bit in the last few years. And that's part of the reason why we're so excited about the products ahead. So we're quite bullish on our future despite the fact that we need a little bit of time to get some of our leaders and some of our products up to speed. But the future is very bright for us and the opportunity ahead. Thank you.

Dan, it's Nate. Just quickly on the guidance and the philosophy. So really no change in the approach to guidance. It's very data-driven. And I would say it just reflects the trends that we see in the business today. I would probably add that visibility is somewhat more limited than it has been in recent history. And given that, we're not assuming any meaningful improvement in the environment during the quarter. In general, we don't think that guidance should really be considered conservative or aggressive. The goal really is to be credible and I think grounded in the data. So we'll call it like we see it, and then we'll go execute with a lot of rigor and a lot of discipline.

Our final question comes from Jason Helfstein with Oppenheimer.

I'll try to ask 2. I mean, is there -- when you think about the business change from 1Q to 2Q now to the 3Q guide, is there a way to unpack it and kind of be like this is what we think kind of like the macro/auto/CPG impact. This might be the, let's say, impact from maybe some risks with certain agencies or something like that was like we call like temporary. And then is there a third bucket of, I don't know, what we -- like other related issues and maybe it's some of the things you alluded to with clients kind of making poor buying decisions, but ultimately could be convinced to see a lot of your way. So I don't know, just maybe help folks kind of break it down. And then I guess, the other question is when you think, I don't know, 2 or 3 years from now, could we be thinking about this is a -- I don't know, a smaller organization that relies a lot more on automation tools to kind of accomplish the goals?

Thanks for the question, Jason. So I'm actually really glad that you've asked this question because it can help paint the picture of sort of where we're seeing opportunity and where we're seeing some pressures. What we've tried to really highlight is that most of our customers and most of our business is doing very well. I do think you can say we have some customer concentration. And by the nature of the fact that we service the top 500 advertisers in the world, it already has some concentration, if you will. And the fact that we're adding so much to the growth team, which includes some middle market as well as some of the brands that we've been winning back, it just underlines that we're winning in almost everywhere, in almost every category. But there are a handful of businesses, often large, that are under pressure. And sometimes, when you're under pressure, you try to pursue something that is cheaper, you try to cut costs. You try to do things that can get you through that. In some of those cases, they recognize that they're making decisions that don't help them in the long term. So that's part of the reason why we tried to highlight and give so many numbers about the different categories of business and then highlight some of the categories is to just make sure that we were isolating those that were struggling from those that are doing really well. And we highlight that just because, obviously, our results are lower than we wanted them to be, and our guide is lower than we wanted to be. So we just spend a little bit more time talking about the problem, but we don't want anyone to walk away from this thinking there is a systemic problem. This is more a cyclical issue with a handful of customers, and it's not hard to look at their earnings and see that they've had some challenges. So we tried to highlight that. But it's really important that the bigger takeaways are that we signed over 200 JBPs through Q2, and that represents 38% growth year-over-year. That -- the JBP growth rate is 6x higher than overall revenue. The majority of our top 100 accounts are growing double digits. CTV and audio grew double digits once again in Q2. Audio actually became our fastest-growing channel and now represents over 7% of our business. And we just continue to expand our partnership with Spotify, which we're extremely excited about. I don't think we gave enough word count to the fact that EMEA and APAC have both grown at almost 30% year-to-date. So both of them have done really phenomenal, where in recent years, that hasn't been the case. So the fact that those are now paying off is amazing. And the fact that the second largest market in China is now growing over 100% year-to-date for us is fantastic. And then, of course, we had over 50% CTV growth year-over-year in both EMEA and APAC, where historically, those were mostly mobile-first markets and to see CTV doing so well in each of those markets, it's just underscoring that we've made the right investments. So there are green shoots all over the place, but there are a few large customers that are under pressure. We've tried to highlight that, but please don't walk away from this thinking that that's affecting everyone. It's actually just a couple of them. And then overall, we have most of our departments, most of our business, most of our customers and most of our geographies doing really well with the brightest future being in things like CTV, inside of audio, in our retail partnerships, in our data partnerships. And when you fuel that or when you funnel that into our measurement product and our Audience Unlimited product, we think that there's a way to really accelerate that flywheel. And if you get rid of just a little bit of some of those macro pressures, a lot of things change. The last thing that I just think is really important to underline and answer to your question is we have an unbelievable leadership team. Most of them are new. And so we're just trying to give them enough runway to get up to speed and really make a substantial contribution. And we're convinced that they can and they will. So I'm really excited to see what we can all do together and excited for the next chapter. And while days like today hurt, they're going to make the comeback story even more exciting and more impressive. Thank you.

Thank you. This concludes the question-and-answer session. This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.