The Trade Desk continues to Wow Investors With Latest Earnings Report

by | Aug 12, 2019 | Markets

The report showed increased revenue and earnings during the second quarter.

Shares of The Trade Desk are up 124% year to date and last week, the company released its second-quarter earnings report. Going into the earnings report, investor expectations were high and the results didn’t disappoint. The earnings report showed a huge shift to connected TVs and an increase in video advertising. 

A closer look at the earnings report

Here are some of the biggest takeaway from The Trade Desk’s second-quarter earnings report:

  • Revenue and earnings are up: The online advertising marketplace reported revenue of $159.92 million which beat forecasts of $154 million. But it was The Trade Desk’s adjusted EBITDA that really made investors take a second look. Adjusted earnings per share reached $0.95 per share, beating analyst estimates of $0.69 per share.
  • The company saw huge gains in advertising spending: During the second quarter, The Trade Desk focused on improving its omnichannel approach. It saw big gains in the following areas:
  • Mobile video spending grew 50% year over year 
  • In-app spending grew 63% 
  • Revenue from connected-TV ads and audio more than doubled
  • The Trade Desk’s customer retention rate remained high: It’s important to note what a good job the company does of hanging onto its customers. The Trade Desk’s customer retention rate has remained over 95% for 23 consecutive quarters. This is an important metric because it gives insight into the company’s future growth and revenue. 
  • The company raised its full-year guidance: Thanks to these solid results, The Trade Desk raised its full-year guidance. Forecasted revenue is now $653 million, up from $645 million. And adjusted EBITDA is projected for $201 million.

The momentum will continue

The Trade Desk continues to outpace its competitors and experience incredible growth both in its digital advertising and programming advertising businesses. The company recently announced it is partnering with Amazon to sell video ads on Amazon Fire TVs. CEO Jeff Green called this partnership the “most important initiative in connected TV to date.” 

These results are exciting and the company’s growth should continue for the foreseeable future. The total market for advertising is expected to reach $1 trillion by 2027 and The Trade Desk is well-positioned to capitalize on this opportunity.