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Digital advertising placement firm Trade Desk reported better than expected third quarter earnings Thursday and raising guidance. $TTD shares soared 15% after hours as the connected TV ad spending growth rate accelerates. 

Trade Desk IPO

The Trade Desk Inc NASDAQ: TTD Reported Earnings After Close Thursday

$0.65 Beat Exp $0.49 EPS AND $118.83M Beat $117 Million Revenue Forecast

Earnings

The Trade Desk (TTD) reported September adjusted quarterly earnings of $0.65 per share, beating the consensus estimate of $0.49 per share. This compares to earnings of $0.35 per share a year ago. Last quarter the company reported earnings of $0.60. Over the last four quarters, the company has surpassed consensus EPS estimates four times.

The Trade Desk reported revenues of $118.83 million for the quarter beating the consensus estimate of $117 million, a 50% year-over-year increase in revenue in the year-ago quarter. This compares to year-ago revenues of $79.41 million. The company has also beaten consensus revenue estimates four times over the last four quarters.

The Trade Desk Inc NASDAQ: TTD

Market Reaction : After hours $130.15 −7.95 (+15.37%)

Highlights

$TTD has been a hot IPO since it went public at 18 on Sept. 21 in 2016 and trades under high expectation as a result. Trade Desk has positioned itself in most of the major sectors in the economy including financial, auto manufacturers, apparel, food and restaurants. 

  • Connected-TV ad spending was up 10x between the third quarter of 2017 and the third quarter of 2018.
  • Audio ad spending jumped 192% year over year, in line with the 191% year-over-year growth the channel saw in Q2.
  • Mobile ad spending increased 65%, including mobile in-app, video, and web channels, a deceleration from 89% year-over-year growth in Q2.

 

Outlook

The Trade Desk's raised its full-year outlook for both revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The company is now expecting full-year revenue to be at least $464 million, up from a previous forecast for revenue of at least $456 million.

Management expects full-year adjusted EBITDA to be $145 million, up from a previous estimate for $140 million. $145 million in adjusted EBITDA would be a huge jump from the $95 million The Trade Desk achieved in 2017.

trading desk

$TTD has maintained the strong customer retention it saw last quarter where customer retention remained over 95% during the quarter, as it has for the previous 15 quarters.

About Trade Desk

Trade Desk operates a self-service internet-based platform that enables advertising buyers to create, manage, and optimize digital ad campaigns across multiple media and devices.

"The Trade Desk powers the most sophisticated buyers in advertising technology. Founded by the pioneers of real-time bidding, The Trade Desk has become the fastest growing demand-side platform in the industry by offering agencies, aggregators, and their advertisers best-in-class technology to manage display, social, mobile, and video advertising campaigns.

The Trade Desk empowers buyers at the campaign level with the most expressive bid capabilities in market, full-funnel attribution, and detailed reporting that illustrates the consumer journey from initial impression to conversion. By maintaining a pure buy-side focus, The Trade Desk delivers on branding and performance for clients worldwide"  From Trade Desk

Trade Desk competes with Google parent Alphabet $GOOGL and smaller companies such as AppNexus.

From The TradersCommunity Research Desk

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