The Trade Desk’s Q3 Earnings Top Expectations, Shares Fall on Weak Q4 Outlook

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The Trade Desk ($NASDAQ:TTD) is a technology company that provides a self-service platform for advertisers to purchase and manage digital advertising campaigns. The company’s third quarter earnings topped expectations, but shares fell on a weak outlook for the fourth quarter. Trade Desk reported non-GAAP EPS of $0.26, beating analyst expectations by $0.03.

Looking ahead to the fourth quarter, the company expects revenue to be at least $490 million, compared to the consensus estimate of $509.13 million. Adjusted EBITDA is expected to be approximately $229 million.

Earnings

The Trade Desk’s Q3 earnings report showed that the company earned 1389.0M USD in total revenue, and 33.8M USD in net income. This is a 16.1% increase in total revenue compared to the previous year, and a 75.5% decrease in net income.

However, over the past three years, TRADE DESK‘s total revenue has increased from 836.0M USD to 1389.0M USD. However, the company’s full-year guidance remains unchanged. The company is a leading player in the programmatic advertising space and is well-positioned to continue growing in the future.

Stock Price

The weak guidance sent shares tumbling in after-hours trading.

VI Analysis

Companies with strong fundamentals tend to have long-term potential, and the Trade Desk is no exception. Based on the VI Star Chart, the Trade Desk is classified as a “gorilla” company, meaning that it has achieved stable and high revenue or earning growth due to its strong competitive advantage. This makes it an attractive investment for growth-oriented investors. Health-wise, the Trade Desk scores a 10 out of 10, indicating that it is in excellent financial shape. This is due to its strong cash flow and low debt levels.

The company is therefore able to pay off its debts and fund future operations without any problems. In terms of key financial metrics, the Trade Desk is strong in assets, growth, and profitability, but weak in dividend payments. Nevertheless, its overall fundamentals make it a company worth considering for investment.

VI Peers

The Trade Desk Inc is a company that provides a platform for programmatic advertising. The company’s competitors include Plaid Inc, PubMatic Inc, and Kubient Inc.

– Plaid Inc ($TSE:4165)

Plaid Inc is a financial technology company that provides an API platform that enables applications to connect with users’ bank accounts. The company has a market cap of 25.8 billion as of 2022 and a return on equity of -10.39%. Plaid’s products are used by a number of companies, including Acorns, Betterment, Robinhood, and Venmo.

– PubMatic Inc ($NASDAQ:PUBM)

PubMatic is a global technology company that provides a software platform for digital publishers. The company’s software allows publishers to manage inventory, optimize yield, and access demand from the world’s leading marketers. PubMatic’s mission is to automate the complex processes that power the digital advertising ecosystem, from ad buying to selling, to help all stakeholders realize the full value of their digital assets.

PubMatic has a market cap of 928.74M as of 2022 and a Return on Equity of 17.37%. The company’s software allows publishers to manage inventory, optimize yield, and access demand from the world’s leading marketers.

– Kubient Inc ($NASDAQ:KBNT)

Kubient Inc is a publicly traded company with a market capitalization of 18.15 million as of 2022. The company has a negative return on equity of 52.06% due to its high debt levels. Kubient Inc is a provider of cloud-based marketing and advertising solutions. The company offers a suite of products and services that allow businesses to reach their customers through digital channels. Kubient’s products and services include website design and development, search engine optimization, social media marketing, and email marketing. The company has a strong focus on small and medium-sized businesses.

Summary

The Trade Desk is a technology company that provides a self-service software platform that enables advertisers to purchase and manage digital advertising campaigns across various ad exchanges. The company has a strong business model that is based on a recurring revenue model. The Trade Desk has a large and growing customer base that includes some of the largest advertising agencies and brands in the world.

The company has a strong growth outlook and is well positioned to continue to grow at a rapid pace in the coming years. The Trade Desk is a great company to consider investing in if you are looking for a high-growth stock with a strong business model.