Trade Desk reported second-quarter earnings and revenue that topped consensus estimates as internet TV drove growth. The digital advertising firm's guidance for Trade Desk stock came in above expectations.
Reported after the market close on Thursday, Trade Desk earnings were 39 cents a share, up 39% from a year earlier. Revenue climbed 26% to $585 million, the company said.
A year earlier, Trade Desk earnings were 28 cents a share on sales of $464 million. Trade Desk stock analysts expected earnings of 36 cents a share on sales of $578 million, according to FactSet.
Trade Desk Stock: Revenue Outlook
The Ventura, Calif.-based company said earnings before interest, taxes, depreciation and amortization (EBITDA) rose 34% to $242 million. Analysts estimated EBITDA of $226 million.
"Management highlighted significant strides in internet TV as well as progress from its new AI-driven platform Kokai," RBC Capital analyst Matthew Swanson said in a report.
Referring to management's earnings call with analysts, he added: "We would not expect additional color on Netflix monetization given the uncertain timing but would look for qualitative information around the partnership."
On the stock market today, Trade Desk stock rose 5% to 92.74.
For the current September-ending quarter, Trade Desk said it expects revenue of $618 million at the midpoint of guidance, topping estimates of $605 million.
Trade Desk forecast EBITDA of $248 million versus Wall Street's consensus estimate of $246 million.
Heading into the Trade Desk earnings report, Trade Desk stock had advanced 21% in 2024.
Trade Desk stock holds a relative Strength Rating of 69 out of a best possible 99, according to IBD Stock Checkup.
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