Trade Desk Surges on Strong Results and Outlook, Analyst Praises 'Exceptional' Execution

August 10, 2022 7:18 AM EDT
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Price: $57.45 -0.43%

Rating Summary:
    21 Buy, 7 Hold, 0 Sell

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    Up: 8 | Down: 12 | New: 9
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Shares of The Trade Desk (NASDAQ: TTD) are up more than 17% in premarket trading after the advertising technology company delivered very strong second-quarter results.

The Trade Desk reported an in-line Q2 EPS of $0.20 while revenue for the quarter came in at $377 million, better than the consensus estimate of $364.87 million.

For this quarter, the company is seeking an adjusted Ebitda of $140 million on revenue of $385 million, better than the Bloomberg consensus of an adjusted Ebitda of $382.1 million on revenue of $134.2 million.

Truist Securities analyst Youssef Squali heaped praise on TTD after the company delivered “strong” results in a tough macroeconomic environment.

“We're incrementally positive on TTD as the company's execution in 2Q22 remained exceptional, with a beat and raise amidst a challenging macro, implying market share gains… TTD remains one of our favorite SMIDs, with one of the fastest growing top lines in the online ad space, producing ~40% EBITDA margin and healthy FCF,” Squali told clients.

KeyBanc analyst Justin Patterson raised the price target to $70 from $52 as the company continues to deliver “best-in-class margins.”

“The Trade Desk's results showed no meaningful macro slowdown and arguably inflections with respect to long-term relationships. We raise our 2022E, 2023E, and 2024E revenue by 2%, 7%, and 6%, respectively, and EBITDA by 6%, 8%, and 5%, respectively,” Patterson wrote.

By Senad Karaahmetovic

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KeyBanc, Senad Karaahmetovic