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The Trade Desk (TTD) Q1 Earnings and Revenues Top Estimates
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The Trade Desk (TTD - Free Report) reported first-quarter 2022 non-GAAP earnings of 21 cents per share, beating the Zacks Consensus Estimate by 31.25% and surging 50% year over year.
Revenues of $315.3 million also surpassed the Zacks Consensus Estimate by 3.59%. The top line soared 43.5% year over year.
Customer retention remained more than 95% in the reported quarter. At the end of first-quarter 2022, The Trade Desk had more than 1,000 customers.
The Trade Desk witnessed strong momentum around key initiatives like Connected TV, Shopper Data, Unified ID 2.0, OpenPath and new data marketplace.
During the reported quarter, The Trade Desk announced its collaboration with LiveRamp (RAMP - Free Report) to create European Unified ID, a new privacy-first, interoperable solution for the European advertising market.
The solution, based on Unified ID 2.0, will account for specific market requirements in Europe and the U.K., including GDPR regulations and consent framework limitations.
As a part of the collaboration, The Trade Desk and LiveRamp plan to enable bidding on RampID, LiveRamp’s privacy-first, people-based identifier, within The Trade Desk in Europe.
The Trade Desk also announced a partnership with AppLovin (APP - Free Report) , which gives agencies and advertisers access to AppLovin Exchange (“ALX”) — the leading in-app RTB exchange — with the addition of ALX as a supply source to The Trade Desk’s platform.
AppLovin also announced that it will be the first mobile in-app exchange to help enable Unified ID 2.0 signals for participating mobile publishers.
Additionally, in March, The Trade Desk announced a new integration with Adobe Real-Time CDP, a leading customer data platform.
Operating Details
Adjusted EBITDA in first-quarter 2022 surged 71.6% year over year to $121 million. Adjusted EBITDA margin was 38.4%, which expanded 630 basis points (bps) on a year-over-year basis.
Operating expenses jumped 56.8% year over year to $332.4 million, driven by higher general & administrative (G&A) costs, which soared 142.6% year over year to $125.8 million.
Platform operations expenses were $63.9 million, up 26.5% year over year. Sales & Marketing (S&M) expenses increased 26.8% from the prior-year quarter’s levels to $70.7 million. Technology & development expenses of $72 million increased 33.5% year over year.
As a percentage of revenues, G&A increased significantly from the year-ago quarter’s 23.6% to 39.9% in the reported quarter.
Platform operations, S&M and technology & development expenses declined 270bps, 300 bps and 17 bps to 20.3%, 22.4% and 22.8%, respectively.
Loss from operations was $17.1 million against the year-ago quarter’s operating income of $7.8 million.
Balance Sheet
As of Mar 31, 2022, cash and cash equivalents were $1.10 billion compared with $959 million on Dec 31, 2021.
Guidance
For second-quarter 2022, The Trade Desk expects revenues of at least $364 million.
Additionally, the company anticipates adjusted EBITDA to be roughly $121 million.
Zacks Rank & A Stock to Consider
Currently, The Trade Desk has a Zacks Rank #4 (Sell).
Image: Bigstock
The Trade Desk (TTD) Q1 Earnings and Revenues Top Estimates
The Trade Desk (TTD - Free Report) reported first-quarter 2022 non-GAAP earnings of 21 cents per share, beating the Zacks Consensus Estimate by 31.25% and surging 50% year over year.
Revenues of $315.3 million also surpassed the Zacks Consensus Estimate by 3.59%. The top line soared 43.5% year over year.
Customer retention remained more than 95% in the reported quarter. At the end of first-quarter 2022, The Trade Desk had more than 1,000 customers.
The Trade Desk witnessed strong momentum around key initiatives like Connected TV, Shopper Data, Unified ID 2.0, OpenPath and new data marketplace.
The Trade Desk Price, Consensus and EPS Surprise
The Trade Desk price-consensus-eps-surprise-chart | The Trade Desk Quote
Expanding Partner Base
During the reported quarter, The Trade Desk announced its collaboration with LiveRamp (RAMP - Free Report) to create European Unified ID, a new privacy-first, interoperable solution for the European advertising market.
The solution, based on Unified ID 2.0, will account for specific market requirements in Europe and the U.K., including GDPR regulations and consent framework limitations.
As a part of the collaboration, The Trade Desk and LiveRamp plan to enable bidding on RampID, LiveRamp’s privacy-first, people-based identifier, within The Trade Desk in Europe.
The Trade Desk also announced a partnership with AppLovin (APP - Free Report) , which gives agencies and advertisers access to AppLovin Exchange (“ALX”) — the leading in-app RTB exchange — with the addition of ALX as a supply source to The Trade Desk’s platform.
AppLovin also announced that it will be the first mobile in-app exchange to help enable Unified ID 2.0 signals for participating mobile publishers.
Additionally, in March, The Trade Desk announced a new integration with Adobe Real-Time CDP, a leading customer data platform.
Operating Details
Adjusted EBITDA in first-quarter 2022 surged 71.6% year over year to $121 million. Adjusted EBITDA margin was 38.4%, which expanded 630 basis points (bps) on a year-over-year basis.
Operating expenses jumped 56.8% year over year to $332.4 million, driven by higher general & administrative (G&A) costs, which soared 142.6% year over year to $125.8 million.
Platform operations expenses were $63.9 million, up 26.5% year over year. Sales & Marketing (S&M) expenses increased 26.8% from the prior-year quarter’s levels to $70.7 million. Technology & development expenses of $72 million increased 33.5% year over year.
As a percentage of revenues, G&A increased significantly from the year-ago quarter’s 23.6% to 39.9% in the reported quarter.
Platform operations, S&M and technology & development expenses declined 270bps, 300 bps and 17 bps to 20.3%, 22.4% and 22.8%, respectively.
Loss from operations was $17.1 million against the year-ago quarter’s operating income of $7.8 million.
Balance Sheet
As of Mar 31, 2022, cash and cash equivalents were $1.10 billion compared with $959 million on Dec 31, 2021.
Guidance
For second-quarter 2022, The Trade Desk expects revenues of at least $364 million.
Additionally, the company anticipates adjusted EBITDA to be roughly $121 million.
Zacks Rank & A Stock to Consider
Currently, The Trade Desk has a Zacks Rank #4 (Sell).
A better-ranked stock from the Zacks Computer and Technology sector is Analog Devices (ADI - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analog Devices shares have outperformed the sector year to date, declining 11.7%. The sector has declined 26.9% over the same time frame.
ADI is set to report second-quarter fiscal 2022 results on May 18.