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The Trade Desk (TTD) Q3 Earnings and Revenues Top Estimates
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The Trade Desk (TTD - Free Report) reported third-quarter 2021 non-GAAP earnings of 18 cents per share, beating the Zacks Consensus Estimate by 12.5%. The bottom line increased 38.5% from the year-ago quarter but remained flat sequentially.
Revenues of $301.1 million also surpassed the Zacks Consensus Estimate by 6%. The top line increased 39% year over year and 7.5% from the second quarter.
The results were driven by solid customer retention, which remained more than 95% in the reported quarter.
During the quarter, the company introduced a new trading platform named Solimar to help advertisers measure the impact of campaigns across every channel and optimize in real time. In addition, it continued industry-wide collaboration and support for Unified ID 2.0. These also aided the quarterly performance.
For the reported quarter, platform operations expenses were $53.4 million, up 19.1% year over year. Sales & marketing expenses increased 32.8% from the prior-year quarter to $59.3 million. Technology & development expenses of $55.8 million and general & administrative costs of $52.1 million increased 36% and 21.8% year over year, respectively.
As a percentage of revenues, platform operations, sales & marketing, technology & development, and general & administrative expenses contracted 300 basis points (bps), 100 bps, 50 bps, and 250 bps, respectively.
Consequently, income from operations was $80.4 million, up 88% year over year. As a percentage of revenues, the metric expanded 690 bps.
Adjusted EBITDA margin was 41%, which expanded 500 bps from the previous-year quarter.
Balance Sheet
As of Sep 30, 2021, cash and cash equivalents were $576.9 million compared with $476.9 million on Jun 30, 2021.
Short-term investments were $221.7 million at third quarter-end, down from $228.2 million at second quarter-end.
For the third quarter, accounts receivable was $1.6 billion compared with $1.5 billion in the second quarter.
Guidance
For fourth-quarter 2021, The Trade desk expects revenues of $388 million. The Zacks Consensus Estimate for the same is projected at $390.1 million.
Additionally, the company anticipates adjusted EBITDA to be $175 million.
Zacks Rank & Stocks to Consider
Currently, The Trade Desk has a Zacks Rank #3 (Hold).
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The Trade Desk (TTD) Q3 Earnings and Revenues Top Estimates
The Trade Desk (TTD - Free Report) reported third-quarter 2021 non-GAAP earnings of 18 cents per share, beating the Zacks Consensus Estimate by 12.5%. The bottom line increased 38.5% from the year-ago quarter but remained flat sequentially.
Revenues of $301.1 million also surpassed the Zacks Consensus Estimate by 6%. The top line increased 39% year over year and 7.5% from the second quarter.
The results were driven by solid customer retention, which remained more than 95% in the reported quarter.
During the quarter, the company introduced a new trading platform named Solimar to help advertisers measure the impact of campaigns across every channel and optimize in real time. In addition, it continued industry-wide collaboration and support for Unified ID 2.0. These also aided the quarterly performance.
The Trade Desk Price, Consensus and EPS Surprise
The Trade Desk price-consensus-eps-surprise-chart | The Trade Desk Quote
Operating Details
For the reported quarter, platform operations expenses were $53.4 million, up 19.1% year over year. Sales & marketing expenses increased 32.8% from the prior-year quarter to $59.3 million. Technology & development expenses of $55.8 million and general & administrative costs of $52.1 million increased 36% and 21.8% year over year, respectively.
As a percentage of revenues, platform operations, sales & marketing, technology & development, and general & administrative expenses contracted 300 basis points (bps), 100 bps, 50 bps, and 250 bps, respectively.
Consequently, income from operations was $80.4 million, up 88% year over year. As a percentage of revenues, the metric expanded 690 bps.
Adjusted EBITDA margin was 41%, which expanded 500 bps from the previous-year quarter.
Balance Sheet
As of Sep 30, 2021, cash and cash equivalents were $576.9 million compared with $476.9 million on Jun 30, 2021.
Short-term investments were $221.7 million at third quarter-end, down from $228.2 million at second quarter-end.
For the third quarter, accounts receivable was $1.6 billion compared with $1.5 billion in the second quarter.
Guidance
For fourth-quarter 2021, The Trade desk expects revenues of $388 million. The Zacks Consensus Estimate for the same is projected at $390.1 million.
Additionally, the company anticipates adjusted EBITDA to be $175 million.
Zacks Rank & Stocks to Consider
Currently, The Trade Desk has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector include Advanced Micro Devices (AMD - Free Report) , ASE Technology (ASX - Free Report) and Mimecast Limited , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates for Advanced Micro Devices, Mimecast, and ASE are currently projected at 46.2%, 35%, and 26.9%, respectively.