Trade Desk dipped Thursday after the company reported March-quarter earnings and revenue that topped estimates as internet TV drove growth. TTD stock rose as the company's guidance edged above views, but shares reversed lower. The stock is today's selection for IBD 50 Stocks to Watch.
The digital advertising firm reported first-quarter earnings after the market close Wednesday.
Trade Desk stock initially rose 4.3% to 67.75 after hours on the stock market today. Heading into the Trade Desk earnings report, TTD stock was trading just below an entry point of 66.45, according to IBD MarketSmith charts. But shares erased those gains and ended Thursday's action down 0.7% to 64.53.
Trade Desk earnings for the quarter ending March 31 were 23 cents per share, up 2 cents from a year earlier. Revenue for TTD stock rose 21% to $383 million, the company said.
A year earlier, Trade Desk earnings were 21 cents a share on sales of $315 million. TTD stock analysts expected earnings of 13 cents a share on sales of $364.4 million, according to FactSet.
The Ventura, Calif.-based company said earnings before interest, taxes, depreciation and amortization, known as EBITDA, came in at $109 million, up 28%. Analysts estimated EBITDA of $79 million.
TTD Stock: New Chief Financial Officer
"Management noted that it continues to outpace the digital advertising market with key drivers in 2023 including the shift from linear to internet TV," RBC Capital analyst Matthew Swanson said in a report.
Also, Trade Desk announced the promotion of Laura Schenkein to chief financial officer effective June 1.
For the current quarter ending in June, Trade Desk said it expects EBITDA of $160 million vs. estimates of $157 million. Trade Desk predicted revenue of $452 million at the midpoint of guidance vs. estimates of $445 million.
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 has advanced 44.9% in 2023. In addition, Trade Desk stock holds a Relative Strength Rating of 95 out of a possible 99, according to IBD Stock Checkup.
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