Trade Desk earnings beat expectations, stock rises
By Emily Bary
Ad-tech company's products are increasingly resonating with marketers, CEO says
Advertising-technology company Trade Desk Inc. topped expectations with its quarterly results and outlook Wednesday, and its shares were moving higher in the extended session after the report.
The company recorded first-quarter net income of $9 million, or 2 cents a share, whereas it posted a net loss of $15 million, or 3 cents a share, in the year-before quarter. Analysts were expecting an 8-cent loss per share on a GAAP basis.
On an adjusted basis, Trade Desk (TTD) recorded earnings per share of 23 cents, up from 21 cents a year before, while analysts were modeling 13 cents.
Revenue increased to $383 million from $315 million, whereas the FactSet consensus was for $364 million.
"Our strong start to the year is testament to the increasing value that marketers place on objective, transparent, data-driven media buying on the open internet," Chief Executive Jeff Green said in a release.
He added that "more leading marketers are leveraging new innovations, such as shopper data, to better understand the relationship between campaign activity and consumer action."
Trade Desk shares were up 3% in after-hours trading Wednesday.
For the second quarter, Trade Desk executives expect at least $452 million of revenue, while the FactSet consensus was for $445 million. They also model about $160 million in adjusted earnings before interest, taxes, depreciation and amortization, whereas analysts were modeling $157 million.
The company disclosed that Chief Financial Officer Laura Blake Grayson will be leaving to pursue an opportunity outside the ad-tech sector. Laura Schenkein, the company's executive vice president for financial planning and analysis, will step into the role June 1.
-Emily Bary
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05-10-23 1617ET
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