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The Trade Desk stock gains on better-than-feared results

Published 2023-02-15, 07:04 a/m
© Reuters.
TTD
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By Senad Karaahmetovic

Shares of The Trade Desk (NASDAQ:TTD) are trading over 6% higher in pre-market Wednesday after the company reported better-than-expected Q4 earnings and guidance for the current quarter.

TTD posted an EPS of $0.38 on revenue of $491 million, beating the analyst consensus for earnings of $0.35 on sales of $490.7M. Overall, revenue increased by 24% year-over-year while adjusted EBITDA was reported at $245M. The adjusted EBITDA margin exceeded the consensus by 330 basis points after coming in at 50%.

"The Trade Desk outpaced nearly all areas of digital advertising in 2022, with 32% revenue growth year over year, and a record $491 million of revenue in the fourth quarter alone. This performance was underscored by significant profitability and cash flow. In an unpredictable macro environment, our growing relationships with agencies and brands is testament to the value of the open internet over the limitations of walled gardens," said Jeff Green, founder and CEO of The Trade Desk.

For this quarter, the company sees revenue at $363M, above the consensus of $360.9M. The adjusted EBITDA is seen at $78M, again above the $75.4M consensus.

The Trade Desk also said its board approved the $700M share buyback program.

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