Trade Desk on Wednesday reported September-quarter earnings and revenue that topped estimates as internet TV drove growth. But revenue guidance for TTD stock came in below expectations.
The digital advertising firm reported third-quarter earnings before the market open. Trade Desk stock initially rose. But TTD stock reversed down as the Nasdaq composite retreated.
Trade Desk stock tumbled 8% to close at 39.89 on the stock market today. TTD stock has dropped for 10 straight sessions.
Trade Desk earnings for the quarter ending Sept. 30 were 26 cents per share, up 44% from a year earlier. Revenue for TTD stock rose 31% to $395 million, said the Ventura, Calif.-based company. A year earlier, Trade Desk earnings were 18 cents a share on sales of $301 million.
TTD stock analysts expected earnings of 23 cents a share on sales of $386.2 million, according to Factset.
Trade Desk Stock: Revenue Outlook Light
The company said earnings before interest, taxes, depreciation and amortization, known as EBITDA, came in at $163 million. Analysts estimated EBITDA of $141 million.
For the current quarter ending in December, Trade Desk said it expects EBITDA of $229 million vs. estimates of $226 million. Trade Desk predicted revenue of $490 million at the midpoint of guidance vs. estimates of $509 million.
"Bulls will point to TTD's ability to continue to gain market share, sustain high retention rates, generate healthy EBITDA margins, and execute well across several growth initiatives," RBC Capital analyst Shweta Khajuria said in a report to clients. "Bears will point to valuation vs. peers and the recent hike in stock-based compensation grants."
The company's automated platform enables brands and ad agencies to buy online and mobile ads in real time, rather than in advance manually. In addition, Trade Desk helps clients leverage online data to improve their targeted advertising.
TTD stock had retreated nearly 52% in 2022. In addition, Trade Desk stock holds a Relative Strength Rating of 23 out of a possible 99, according to IBD Stock Check-up.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
