Trading desk ( TTD ) reported September-quarter revenue and earnings that topped estimates on Wednesday, driven by Internet TV growth. But earnings guidance for TTD stock fell short of expectations.
The digital advertising company reported third-quarter earnings before the market opened. Trade Desk stocks initially rose. But TTD stock retreated as the Nasdaq composite retreated.
Trade Desk stock fell 8% to close at 39.89 on the stock market today. TTD stock has fallen for 10 consecutive days.
Trade Desk earnings for the quarter ended Sept. 30 were 26 cents per share, up 44% from a year earlier. Revenue for TTD stock rose 31 percent to $395 million, the Ventura, California-based company said. A year earlier, Trade Desk earned 18 cents per share on sales of $301 million.
TTD stock analysts expected earnings of 23 cents on the share sale, according to Factset.
Trade Desk Stocks: Earnings Outlook Light
Also known as EBITDA, interest, taxes, The company said earnings before depreciation and amortization were $163 million. Analysts estimate EBITDA at $141 million.
For the current quarter ending December; The Trade Desk said EBITDA was expected to be $229 million versus estimates of $226 million. The Trade Desk had forecast revenue of $509 million, in the middle of guidance.
“Bulls will point to TTD continuing to gain market share, maintain high retention rates, generate healthy EBITDA margins and perform well on several growth initiatives,” RBC Capital analyst Shweta Khajuria said in a note to clients. “Bears will point to peers and recent increases in stock-based compensation.”
The company’s automated platform enables brands and ad agencies to buy online and mobile ads in real-time, rather than manually pre-posting. Additionally, Trade Desk helps clients leverage online data to improve their targeted advertising.
TTD stock has retreated nearly 52% in 2022. In addition, Trade Desk stock has a Relative Strength Rating of 23 out of a possible 99, according to IBD StockCheck.
Follow Reinhardt Krause on Twitter @reinhardtk_tech 5G wireless; artificial intelligence, For updates on cyber security and cloud computing.
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