Today, shareholders of Trade Desk Inc (NASDAQ:TTD) woke up to a nice 10% pop in the value of their shares, after the advertising technology firm posted a strong first quarter as a public company, with Q3 results handily beating street expectations and Q4 guidance largely in-line with expectations.
In the wake of the earnings announcement, Trade Desk shares are up nearly 10% to $25.65 in Friday’s trading session.
TTD reported total revenue of $53 million, which handily beat Street estimates 49.1 million. Adjusted EBITDA of $16.6 million beat the Street’s $12.9 million expectation. For Q4, the company guided to Revenue of $62 million, in-line with the Street’s $62 million.
“Media buyers find enormous value in the ability to look at millions of ad opportunities every second across devices and formats, using data to make the best decisions in real-time. We are excited to share today that we exceeded our own expectations for the third quarter,” said Jeff Green, founder and CEO of The Trade Desk. “We’ve broken many of our previous records during the quarter including revenue of $53.0 million which is an 84% increase year over year. We delivered net income of $3.6 million and adjusted EBITDA of $16.6 million, distinguishing The Trade Desk from many comparable companies. Following our successfully completed IPO in September, we continue to see great momentum from our customers in the adoption of programmatic advertising on our platform and our global offerings. Because of our significant growth in international expansion, mobile, video, and television, we have significantly outgrown the industry and are massively outpacing the growth of the overall market.”
On the ratings front, Trade Desk has been the subject of a number of recent research reports. In a report released today, Needham analyst Kerry Rice reiterated a Buy rating on TTD, with a price target of $32, which represents a potential upside of 28% from where the stock is currently trading. Separately, yesterday, Jefferies’ Brian Fitzgerald reiterated a Buy rating on the stock and has a price target of $35.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Kerry Rice and Brian Fitzgerald have a yearly average return of 4.8% and 11.4% respectively. Rice has a success rate of 56% and is ranked #592 out of 4200 analysts, while Fitzgerald has a success rate of 66% and is ranked #170.
Overall, 4 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $32.33 which is 29% above where the stock opened today.
The Trade Desk, Inc. provides a technology platform for ad buyers. It offers agencies, aggregators and advertisers technology to manage and display, social, mobile and video advertising campaigns. The company was founded by Jeffrey Terry Green and David Pickles in November 2009 and is headquartered in Ventura, CA.