Home Investing Trade Desk stock surges after announcing strong financial results

Trade Desk stock surges after announcing strong financial results

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Trade Desk (NASDAQ: TTD) stock shot up 15% after the ad tech corporation’s sales top forecast expectations. The company recorded stronger-than-expected sales amid doubts about the digital advertising industry.

Trade Desk tops estimates 

Trade Desk reported $337 million in sales in the second quarter of the 2022 fiscal year, which was more than the $280 million it recorded in the same quarter of the previous fiscal year. After the stock-based compensation adjustment, the online advertising corporation recorded earnings of about $0.20 per share.

The company beat the $365 million in sales analyst estimates, according to FactSet. The company’s stock rose by over $61 per share immediately after it announced its strong financials, after closing at $54, representing a 0.9% decline.

The company has been somewhat under pressure because of the perceived go-slow in online advertising spending, which was recently seen in the earnings of the bigger online-advertising companies such as Meta Platforms Inc, Facebook’s parent company.

Trade desk executives expect $385 million in total revenue in the third quarter, which is higher than the $382 million analyst estimate.  

Jeff Green, the company’s Chief Executive Officer, said:

We delivered outstanding performance in the second quarter, growing 35% versus a year ago, significantly outpacing worldwide programmatic advertising growth.

The Chief Executive claims that Trade Desk’s performance benefitted from a robust connected television advertisements approach and joint business plans, with advertisers like Albertsons Cos and Walt Disney Cos, despite a hostile macroeconomic environment.

Green also talked about encouraging discussions with Netflix, which is in the process of developing an advert-supported platform designed for Microsoft-based streaming subscribers.

The CEO added that the huge advertising brands are also increasingly avoiding the “draconian” advertising approaches.

Analyst comments 

Analysts from KBCM wrote:

We believe the industry has entered into a modest ad recession, where the combination of tighter budgets, less time spent online, and inflation and FX headwinds is creating elevated pressure on companies.

The post Trade Desk stock surges after announcing strong financial results appeared first on Invezz.

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