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The Trade Desk (TTD) Q2 Earnings Lag Estimates, Revenues Up Y/Y

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The Trade Desk (TTD - Free Report) reported second-quarter 2022 non-GAAP earnings of 20 cents per share, lagging the Zacks Consensus Estimate by 4.76% but increasing 11.1% year over year.

Revenues of $377 million also surpassed the Zacks Consensus Estimate by 3.21%. The top line soared 34.6% 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 in key initiatives like Connected TV, Shopper Data, Unified ID 2.0, OpenPath and new data marketplace.

Expanding Partner Base

During the reported quarter, The Trade Desk announced a collaboration with Albertsons Media Collective, the retail media division of Albertsons Companies, to bring verified-buyer audience and measurement solutions to The Trade Desk platform.

The Trade Desk continues to gather support for its Unified ID 2.0 (UID 2) technology driven by integrations with Disney (DIS - Free Report) and Amazon (AMZN - Free Report) .  
 

The Trade Desk Price, Consensus and EPS Surprise

The Trade Desk Price, Consensus and EPS Surprise

The Trade Desk price-consensus-eps-surprise-chart | The Trade Desk Quote

 

The Trade Desk announced integration with Disney to power interoperability between Disney’s industry-leading Audience Graph and the open-source addressability framework of UID2.

Amazon’s cloud division Amazon Web Services (AWS) announced that it will support UID2 on its platform.

The Trade Desk has inked partnerships with the likes of LiveRamp (RAMP - Free Report) , AppLovin and Adobe Real-Time CDP in recent times.

The Trade Desk inked a partnership with LiveRamp to create European Unified ID (EUID), 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 and consent framework limitations.

Operating Details

Adjusted EBITDA in second-quarter 2022 increased 17.8% year over year to $138.9 million. The adjusted EBITDA margin was 36.8%, which contracted 530 basis points (bps) on a year-over-year basis.

Operating expenses jumped 72.1% year over year to $375.2 million, driven by higher general & administrative (G&A) costs, which soared 159.7% year over year to $134.8 million.

Platform operations expenses were $67.5 million, up 32.8% year over year. Sales & Marketing (S&M) expenses increased 44.8% from the prior-year quarter’s levels to $89.4 million. Technology & development expenses of $83.5 million increased 55.9% year over year.

Operating income was $1.7 million, down 97.2% year over year.

Balance Sheet

As of Jun 30, 2022, cash and cash equivalents were $1.21 billion compared with $1.10 billion on Mar 31, 2022.

Guidance

For third-quarter 2022, The Trade Desk expects revenues of at least $385 million.

Additionally, this Zacks Rank #5 (Strong Sell) company anticipates adjusted EBITDA to be roughly $140 million.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.