Yahoo Finance The Trade Desk (TTD) Q1 Earnings and Revenues Beat Estimates
The Trade Desk TTD reported first-quarter 2024 non-GAAP earnings of 26 cents per share, beating the Zacks Consensus Estimate by 18.18% and surging 13% year over year.
Revenues of $491 million also surpassed the Zacks Consensus Estimate by 2.34%. The top line soared 28.2% year over year.
North America represented about 87% of The Trade Desk’s third-quarter revenues and international represented about 13%.
During first-quarter 2024, customer retention remained at more than 95%.
In the Connected TV domain, The Trade Desk is benefiting from a strong partner base that includes the likes of Disney DIS, Comcast’s CMCSA NBCU, Roku ROKU and others.
The Trade Desk Price, Consensus and EPS Surprise
The Trade Desk price-consensus-eps-surprise-chart | The Trade Desk Quote
Disney recently announced an expanded partnership with The Trade Desk, with Disney Advertising’s Real-Time Ad Exchange Direct via direct integration with OpenPath to meet advertiser demand at scale.
Comcast’s NBCUniversal announced that the 2024 Paris Olympic Games inventory on Peacock will be available to buy programmatically via The Trade Desk.
Moreover, Roku recently announced its plans to empower advertisers using The Trade Desk, with the ability to leverage Roku Media and audience and behavioral data. This will help brands better understand and optimize their campaigns.
The Trade Desk’s expanding partner base, which includes the likes of Times Internet, DISH Media, Lotame, TF1 and M6, is helping it expand usage of Unified ID 2.0 (UID2).
TTD is also expanding its OpenPath technology in CTV with Vizio and Cox Media Group.
Operating Details
Adjusted EBITDA in the first quarter of 2024 surged 48.6% year over year to $162 million. Adjusted EBITDA margin was 33%, which expanded 450 basis points (bps) on a year-over-year basis.
Operating expenses increased 14% year over year to $462.6 million. The upside was caused by higher Platform operations expenses, which increased 22.1% year over year to $103.6 million.
Sales & Marketing (S&M) expenses were $121.7 million, up 25.2% year over year. Technology & development expenses of $107.7 million increased 14.9% year over year.
General & Administrative (G&A) costs decreased 0.6% year over year to $129.6 million. As a percentage of revenues, G&A declined 760 bps year over year.
Platform operations and S&M expenses decreased 110 bps and 60 bps to 21.1% and 24.8%, respectively. Technology & development expenses decreased 250 bps to 21.9%.
Income from operations was $28.7 million against the year-ago quarter’s operating loss of $23.3 million.
Balance Sheet
As of Mar 31, 2024, cash and cash equivalents were $1.42 billion compared with $1.38 billion on Dec 31, 2023.
Cash flow from operations was $185.5 million in the first quarter compared with the fourth-quarter 2023 figure of $187.6 million.
The company repurchased $125 million of its Class A common stock in the first quarter of 2024. As of Mar 31, 2024, The Trade Desk had $575 million available and authorized for repurchases.
Guidance
For second-quarter 2024, The Trade Desk expects revenues of at least $575 million.
Additionally, the company anticipates adjusted EBITDA to be nearly $223 million.
Zacks Rank
Currently, The Trade Desk has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company’s shares have gained 19.5% year to date compared with the Zacks Computer & Technology sector’s increase of 12%.
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