Shares in Trade Desk surged Friday on fourth-quarter earnings that met estimates while revenue topped views as internet TV drove the digital advertising firm's growth. The company's guidance for TTD stock came in above expectations. Trade Desk stock surged on the news.
The company reported December quarter earnings after the market close on Thursday. Trade Desk earnings rose 8% to 41 cents a share from a year earlier, the company said. Revenue climbed 23% to $605.8 million, the company said.
A year earlier, Trade Desk earnings were 38 cents a share on sales of $491 million. TTD stock analysts expected earnings of 41 cents a share on sales of $582 million, according to FactSet.
"The Trade Desk delivered a strong quarter to end the year while the magnitude of the Q1 raise was impressive and unexpected," said RBC Capital analyst Matthew Swanson in a report. "Heading into the quarter, sentiment was generally cautious to negative as investors focused on thematic risks from Google cookie deprecation and Amazon video-on-demand. While neither can be fully resolved in a quarter, management mitigated concerns while emphasizing the opportunities from connected TV, retail media, identity and international."
TTD Stock: Revenue Outlook Above Views
The Ventura, Calif.-based company said earnings before interest, taxes, depreciation and amortization (EBITDA) rose 47% to $284 million. Analysts earlier estimated EBITDA of $274 million.
On the stock market today, TTD stock jumped 17.8% in early trading.
For the current March-ending quarter, Trade Desk said it expects revenue of $478 million at the midpoint of guidance, topping estimates of $451 million.
Trade Desk forecast EBITDA of $130 million versus estimates of $113 million.
Heading into the Trade Desk earnings report, TTD stock had advanced 5% in 2023.
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