Back to top

Image: Bigstock

What's in the Cards for Trade Desk (TTD) in Q1 Earnings?

Read MoreHide Full Article

The Trade Desk (TTD - Free Report) is set to report first-quarter 2019 results on May 9.

Notably, the company’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average positive surprise being 86.8%.

In the last reported quarter, the company's adjusted earnings of $1.09 per share beat the Zacks Consensus Estimate by 30 cents and grew 101.9% year over year. Net revenues increased 56.4% from the year-ago quarter to $160.5 million, beating the consensus mark of $148 million.

The Trade Desk Inc. Price and EPS Surprise

The Trade Desk Inc. Price and EPS Surprise | The Trade Desk Inc. Quote

The Zacks Consensus Estimate for first-quarter earnings has remained unchanged at 25 cents over the past seven days. However, the figure indicates a decline of 26.5% from the year-ago period reported figure.

The consensus mark for revenues is pegged at $116.98 million, suggesting an increase of 36.5% from the year-ago quarter reported figure. Management anticipates revenues to be $116 million.

Let’s see how things are shaping up for the upcoming announcement.

Factors at Play in Q1

Trade Desk is witnessing increasing adoption of its unified ID solution. Notably, Sharethrough, TripleLift and Rubicon Project integrated the company’s unified ID solution into their digital advertising exchanges in first-quarter 2019.

The companies chose Trade Desk’s unified ID solution as it helps them enhance their digital match rates, improve their coverage, increase load times and help deliver more relevant advertising.

Additionally, shift in advertising budget from Linear TV to Connected TV (CTV) is likely to accelerate growth for the CTV business in the to-be-reported quarter. Moreover, the robust growth of Trade Desk’s CTV platform, which grew nine times year over year in fourth-quarter 2018, is likely to have made the platform more attractive to advertisers.

Further, emergence of digital content is boosting the usage of the company’s inventory across all forms of CTV. Notably, the primary drivers of Trade Desk’s CTV inventory are media companies like CBS , ABC, ESPN and AME.

Also, the company’s share in China is expected to increase owing to its partnerships with Baidu Exchange Services, iQIYI and Tencent (TCEHY - Free Report) and the launch of programmatic ad-buying platform in China toward the end of first-quarter 2019.

Notably, through the partnerships, the company is helping advertisers reach premium audiences in China. Additionally, the company’s clients can tap into China using the same platform that they use for the rest of the world. This is expected to attract advertisers and boost their ad spend, thereby driving the top line in the to-be-reported quarter.

Trade Desk currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Radical New Technology Creates $12.3 Trillion Opportunity

Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.

Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.

See the 7 breakthrough stocks now>>


See More Zacks Research for These Tickers


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


Tencent Holding Ltd. (TCEHY) - free report >>

The Trade Desk (TTD) - free report >>

Published in