Trade Desk Earnings Top Estimates As Guidance Edges Above Views
Trade Desk (TTD), on Wednesday, reported earnings and revenues for the March quarter that exceeded estimates. Internet TV was responsible for driving growth. TTD's stock climbed late after the company raised its guidance.
After the close of the market, Digital Advertising reported its first-quarter results.
Today, Trade Desk shares rose by 4.3% in extended trading to 67.75. TTD was just below the entry point of 66.45 when IBD MarketSmith charts showed that TTD stock would be released shortly after the Trade Desk earnings announcement.
The earnings per share for the Trade Desk quarter ended March 31 increased by 2 cents compared to a year ago. The company reported that revenue for TTD shares rose by 21%, to $383,000,000.
Trade Desk's earnings in the previous year were 21 cents per share, based on $315 million of sales. FactSet reported that TTD stock analysts were expecting earnings of 13 cents per share on sales $364.4 millions.
EBITDA (earnings before interest, tax, depreciation, and amortization), as it is known, grew by 28% at the Ventura, Calif., company. Analysts had estimated EBITDA at $79 million.
TTD Stock: New Chief Financial Officer
Matthew Swanson, an analyst at RBC Capital, said that the management noted the market continues to grow faster than the digital advertising sector in 2023. This includes the shift from traditional linear TV to internet television.
Trade Desk also announced that Laura Schenkein was promoted to Chief Financial Officer effective June 1.
Trade Desk expects EBITDA to be $160 million for the current quarter, ending in June. This compares with estimates of $157 millions. Trade Desk forecast revenue at the midpoint guidance of $452 millions compared to estimates of $445million.
The automated platform of the company allows brands and advertising agencies to purchase online and mobile ads instantly, instead of manually. Trade Desk also helps clients to leverage online data in order to improve targeted advertising.
TTD has risen 44.9% since 2023. According to IBD Stock Checkup, Trade Desk's stock has a Relative strength rating of 95.