Shares in Trade Desk wavered Thursday as analysts debated its valuation amid second-quarter earnings and revenue that topped estimates as internet TV drove growth. The company's outlook for TTD stock came in slightly above views.
For the period ending June 30, Trade Desk earnings rose 40% to 28 cents. Revenue for TTD stock rose 23% to $464 million, the company said.
A year earlier, Trade Desk earnings were 20 cents a share on sales of $377 million. TTD stock analysts expected earnings of 26 cents a share on sales of $454.8 million, according to FactSet.
The Ventura, Calif.-based company said earnings before interest, taxes, depreciation and amortization, known as EBITDA, came in at $180 million, up 39%. Analysts estimated EBITDA of $162 million.
"While results in the quarter were solidly above guidance, based on our conversations, they fell short of buy-side expectations given the stock's recent momentum," RBC Capital analyst Matthew Swanson said in a note to clients.
The digital advertising firm reported results after the market close Wednesday. Trade Desk stock initially fell on the earnings release. Shares reversed up after the earnings call with analysts.
TTD stock was up 0.4% to 81.25 before the market open on the stock market today. Heading into the Trade Desk earnings report, TTD stock had advanced 80% in 2023.
TTD Stock: Outlook Just Above Forecasts
For the current quarter ending in September, Trade Desk said it expects EBITDA of $185 million vs. estimates of $183 million. The company predicted revenue of $485 million at the midpoint of its forecast vs. estimates of $481 million.
"Given disappointing guidance from others in the industry like PubMatic, we believe investors will be pleased with 23% year-over-year revenue growth in Q3," Jefferies analyst James Heaney said in a note to clients.
He added: "In our view, this estimate appears conservative, given it implies no acceleration on a 3.5% point easier comparison and assumes softer than typical Q3 seasonality."
The company's automated platform enables brands and ad agencies to buy online and mobile ads in real time, rather than in advance. In addition, Trade Desk helps clients leverage online data to improve their targeted advertising.
Trade Desk stock holds a Relative Strength Rating of 97 out of a best-possible 99, according to IBD Stock Checkup.
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