Back to top

Analyst Blog

Zacks Equity Research

Trade Desk (TTD) Q3 Earnings Beat, Revenues Increase Y/Y (Revised)

TRUE FB ZG TTD

Trades from $3

The Trade Desk Inc. (TTD - Free Report) reported third-quarter 2016 earnings (including stock-based compensation) of 24 cents per share, which beat the Zacks Consensus Estimate by a penny. Excluding stock-based compensation, non-GAAP earnings surged 58.6% from the year-ago quarter to 23 cents.

Total revenue was almost $53 million, up 84.1% from the year-ago quarter and ahead of the Zacks Consensus Estimate of $47 million.

Quarter Details

Trade Desk completed its Initial Public Offering (IPO) on Sep 21, 2016. Net proceeds from the IPO were almost $73.6 million.

The company’s top-line growth was driven by higher spending through newer channels such as Mobile and Audio. Customer retention remained over 95% during the quarter.
 

TRADE DESK INC Price, Consensus and EPS Surprise

 

TRADE DESK INC Price, Consensus and EPS Surprise | TRADE DESK INC Quote

Trade Desk launched a number of new product features and enhancements during the quarter. This includes new user interface update, a new version of the company’s viewability product and hyperlocal mobile targeting product.

Adjusted EBITDA soared 77.7% year over year to $16.6 million.

Operating expenses as percentage of revenues surged 350 basis points (bps) to 71.6% in the reported quarter. This was primarily due to higher general & administrative (G&A) expense as a percentage of revenues that increased 450 bps from the year-ago quarter.

Further, technology and development (T&D) expense as percentage of revenues increased 190 bps. These increases were partially offset by lower platform operations and sales & marketing (S&M) expenses, which declined 110 bps and 190 bps, respectively.

As a result, operating margin contracted 350 bps from the year-ago quarter to 28.4%.

Guidance

For fourth-quarter 2016, Trade Desk anticipates revenues of $62 million and adjusted EBITDA margin of 30%.

Zacks Rank & Key Picks

Trade Desk carries a Zacks Rank #3 (Hold). Some better-ranked stocks include Facebook (FB - Free Report) , TrueCar (TRUE - Free Report) and Zillow Group (ZG - Free Report) . All the three stocks have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth for Facebook, TrueCar and Zillow is currently pegged at 28.8%, 100% and 30%, respectively. Trade Desk is expected to grow at 4%.

Zacks’ Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>

(We are reissuing this article to correct a mistake. The original article, issued on November 14, 2016, should no longer be relied upon.)


In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

TRUECAR INC (TRUE) - free report >>

FACEBOOK INC-A (FB) - free report >>

ZILLOW GROUP (ZG) - free report >>

TRADE DESK INC (TTD) - free report >>