Trade Desk Intrinsic Value Calculation – Trade Desk Beats Expectations with Non-GAAP EPS of $0.23 & Revenue of $382.8M

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The Trade Desk ($NASDAQ:TTD) Inc. is a leading global technology company that provides a self-service programmatic platform for digital advertising. The Trade Desk’s Non-GAAP Earnings Per Share of $0.23 was significantly higher than the expected figure of $0.11, while revenue of $382.8M exceeded estimates of $18.47M. The company’s strong performance was attributed to strong demand for online advertising, which drove an increase in programmatic spending. The Trade Desk also benefited from its strategic investments in the data-driven marketing space, which allowed it to expand its customer base and drive further revenue growth.

Its ability to exceed expectations on both earnings and revenue is a testament to its commitment to delivering value to its customers and shareholders. As the digital advertising industry continues to grow, The Trade Desk looks to be well-positioned to capitalize on the trend and deliver further success for investors.

Earnings

TRADE DESK recently announced their earning report for FY2022 Q4, ending December 31 2022, with impressive results. The company reported a total revenue of 490.74M USD, a 24.0% increase from the previous year, and net income of 71.19M USD, a 785.4% increase from the previous year.

Additionally, TRADE DESK has seen an impressive three-year growth in total revenue, from 319.9M USD to 490.74M USD. More specifically, TRADE DESK reported a Non-GAAP earnings per share (EPS) of $0.23 and a total revenue of $382.8M, both significantly beating analyst expectations. This impressive result speaks to TRADE DESK’s success in adapting to current market conditions and growing their business despite the economic challenges of the last year.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Trade Desk. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Trade Desk. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Trade Desk. More…

Key Ratios Snapshot

Some of the financial key ratios for Trade Desk are shown below. More…

Market Price

The Trade Desk Inc. has exceeded market expectations with its quarterly earnings report. As a result of the strong results, TRADE DESK stock opened at $65.6 and closed at $65.0, up by 1.3% from the previous closing price of 64.1. The company’s CEO, Jeff Green, credited the “clarity of the company’s mission” as the key factor behind the strong results. He also highlighted the resilience of the business to changing market conditions and its ability to quickly adapt to consumer demands.

Overall, it appears that Trade Desk Inc. is well on its way to another successful year of growth and profitability. Investors will be closely watching the company’s future results to see if it can maintain its current performance. Live Quote…

Analysis – Trade Desk Intrinsic Value Calculation

GoodWhale has conducted a thorough analysis of TRADE DESK‘s financials. After careful consideration, we have determined that the fair value of TRADE DESK’s stock lies around $88.0. This has been calculated by making use of our proprietary Valuation Line. Currently, the stock is trading at $65.0, which results in it being undervalued by approximately 26.2%. We believe that this is an opportunity for investors to capitalize on and benefit from. More…

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

Investment analysts have been bullish on The Trade Desk, with the company exceeding expectations for both non-GAAP earnings per share (EPS) and revenue in its most recent quarter. Non-GAAP EPS of $0.23 beat estimates by $0.11, while revenue of $382.8M was an increase of 18.47M from its guidance. Analysts continue to be optimistic about The Trade Desk’s future, citing its focus on programmatic advertising and its roster of enterprise customers as reasons for confidence in their outlook.