Trade Desk (NASDAQ:TTD) Announces Earnings Results

Trade Desk (NASDAQ:TTD) announced its quarterly earnings results on Monday. The technology company reported $0.33 EPS for the quarter, topping the consensus estimate of $0.04 by $0.29, FiscalAI reports. Trade Desk had a net margin of 13.61% and a return on equity of 16.09%. The business had revenue of $735.97 million for the quarter, compared to analysts’ expectations of $650.93 million. During the same quarter in the previous year, the company earned $0.45 EPS. The business’s quarterly revenue was down .5% compared to the same quarter last year.

Here are the key takeaways from Trade Desk’s conference call:

• Third-quarter revenue was $736 million, down 0.5% year over year but meaningfully above the company’s August outlook. A strategic-partner benefit added about 3 percentage points to revenue and is not expected to recur, though management said results excluding it still exceeded expectations.
• The fourth-quarter outlook calls for revenue of at least $755 million, but management does not expect the typical seasonal uplift from Q3 to Q4. Political spending is expected to be higher in Q4 than Q3 but is cyclical, with historical Q1 declines after election-year Q4s.
• Joint business plans were up more than 30% year over year through Q3, and clients using them continue to grow meaningfully faster than those under traditional agreements. The company also reported more than 100 additional plans in its pipeline.
• The company highlighted early product traction: Zuma reduced median time for several campaign setup tasks, while an upgraded Koa model improved CPA by a median 21% in tests; Audience Unlimited campaigns have also shown lower CPA and CPM. These are early results, and management said further development is needed.
• After cutting its workforce by about 15% and recording $44 million in restructuring charges, Trade Desk expects more than $100 million in gross savings in 2027 and meaningfully slower expense growth. Management said some savings will be reinvested, and announced total future share-repurchase authorization of $1 billion.

Trade Desk Trading Up 15.5%

Shares of NASDAQ TTD opened at $14.93 on Tuesday. Trade Desk has a 12-month low of $11.62 and a 12-month high of $45.50. The firm’s 50-day moving average price is $13.09 and its 200-day moving average price is $19.52. The stock has a market capitalization of $7.02 billion, a price-to-earnings ratio of 17.77, a P/E/G ratio of 1.43 and a beta of 0.98.

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on TTD shares. Wolfe Research restated an “outperform” rating and set a $16.00 price objective on shares of Trade Desk in a research report on Friday, August 7th. Robert W. Baird set a $9.00 target price on Trade Desk and gave the stock a “neutral” rating in a research report on Friday, August 7th. Royal Bank Of Canada reissued a “sector perform” rating and set a $15.00 price target on shares of Trade Desk in a research note on Wednesday, September 9th. Citigroup lowered Trade Desk from a “neutral” rating to a “sell” rating and dropped their price target for the company from $21.00 to $11.00 in a research note on Friday, August 7th. Finally, Moffett Nathanson set a $6.00 price target on Trade Desk in a report on Friday, August 7th. Four investment analysts have rated the stock with a Buy rating, twenty-six have issued a Hold rating and nine have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Reduce” and a consensus target price of $18.16.

Trending Headlines about Trade Desk

Here are the key news stories impacting Trade Desk this week:

• Positive Sentiment: Q3 results topped expectations: The Trade Desk reported revenue of about $736 million and adjusted earnings of $0.33 per share, beating analyst estimates. Benzinga article
• Positive Sentiment: Strong Q4 guidance: The company forecast revenue of $755 million, well above the roughly $692 million consensus, signaling a stronger near-term outlook. Benzinga article
• Positive Sentiment: Larger buyback: The Trade Desk added $731 million to its repurchase authorization, bringing the program to $1 billion. Buybacks can support per-share results and signal management’s confidence. Seeking Alpha article
• Positive Sentiment: AI and connected-TV opportunity: CEO Jeff Green highlighted AI tools and the potential for AI to increase demand for advertising data and decision-making, alongside growth opportunities in connected TV. Stocktwits article
• Negative Sentiment: Growth remains a concern: Q3 revenue declined 0.5% year over year, and Green said results remain below the growth level the company expects of itself. That may temper enthusiasm about the beat and outlook. Stocktwits article

About Trade Desk

The Trade Desk, Inc provides a technology platform that helps advertisers and advertising agencies plan, buy, and measure digital advertising. Its self-service platform uses automated, data-driven tools to help clients purchase advertising inventory across channels such as connected TV, mobile, audio, and display.

The company also offers tools for campaign management, audience targeting, measurement, and access to data and advertising inventory. Its platform is designed to help clients manage campaigns across multiple media channels and publishers.

Founded in 2009 by Jeff Green and Dave Pickles, The Trade Desk serves clients in markets around the world.