Trade Desk reported March-quarter earnings and revenue that topped analyst estimates as internet TV drove advertising growth. But TTD stock fell on its weaker-than-expected outlook.
Ventura, Calif.-based Trade Desk reported first-quarter earnings after the market close on Tuesday. TTD stock dipped 1.2% to 43.26 in morning trading on the stock market today.
Trade Desk earnings were 21 cents per share, up 50% from a year earlier. Revenue rose 43% to $315 million. A year earlier, Trade Desk earnings were 14 cents a share on sales of $220 million.
Analysts expected Trade Desk earnings of 15 cents a share on sales of $305 million for the period ended March 31.
TTD Stock: Guidance Disappoints
The company said earnings before interest, taxes, depreciation and amortization, known as EBITDA, came in at $121 million, up 38%, vs. estimates of $92 million.
Strong growth in internet TV ad revenue has been a bright spot for TTD stock. A partnership with retail giant Walmart also is expected to boost 2022 growth.
Trade Desk forecast June quarter revenue of $364 million at the midpoint of guidance, edging by estimates of $359.7 million. Trade Desk said it expects adjusted EBITDA of $121 million vs. estimates of $127.3 million.
"While Q2 guidance may have had less upside than some investors hoped for, we feel that conservatism is prudent in this macro, while still setting up positively for fiscal year outperformance with potential for greater upside in the second half," RBC Capital analyst Matthew Swanson said in a note to clients.
Trade Desk'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.
Long-term, TTD stock could get a boost if Netflix puts advertising on its streaming video platform. "We view a potential partnership with NFLX in time as likely," said Truist analyst Youssef Squali in a report.
TTD stock has retreated 51% in 2022. In addition, Trade Desk stock holds a Relative Strength Rating of 21 out of a possible 99, according to IBD Stock Check-up
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