tiprankstipranks
Trade Desk Q2 Results Beat Estimates; Warns of Higher Business Uncertainty
Market News

Trade Desk Q2 Results Beat Estimates; Warns of Higher Business Uncertainty

Trade Desk (TTD) delivered solid second-quarter results, with revenues and earnings beating consensus estimates. However, the company has warned of the long-term effects of the COVID-19 pandemic that continue to negatively impact advertiser demand.

Revenue came in at $280 million, more than doubling from $139.4 million reported in the same quarter last year and beating consensus estimates of $257.78 million.

Adjusted earnings doubled year-over-year to $0.18 per share and beat analysts’ expectations of $0.13 a share.

CEO Jeff Green attributes the Q2 outperformance to a rising number of the world’s leading brands and agencies joining Trade Desk’s platform and others expanding their relationship with the company.

Green Stated, “This, and our robust international growth in the second quarter, gives us tremendous optimism moving forward.”

During the quarter, Trade Desk launched Solimar. The new trading platform will make it easier for advertisers to take advantage of many opportunities, leveraging off features like simple and secure onboarding. (See Trade Desk stock charts on TipRanks)

Amid the escalating COVID-19 situation, Trade Desk has warned of higher uncertainty in its business outlook. Consequently, the business could be impacted by issues beyond its control, such as challenging economic conditions. Amid the uncertainty, the company is projecting revenues of $282 million for the third quarter and adjusted EBITDA of about $100 million.

Yesterday, Oppenheimer analyst Jason Helfstein reiterated a Buy rating on the stock and raised his price target to $95 from $85, implying 16.82% upside potential to current levels.

According to the analyst, Trade Desk is well-positioned to capitalize on linear TV budgets.

“We believe The Trade Desk’s organically developed and extensible omnichannel SaaS platform, focus on ad agency satisfaction, along with its media independence, make it highly attractive to advertisers, large brands and agencies, and its blended industry-leading subscriptions growth and profit margin profile set it apart as the clear software market leader in digital advertising and one of the highest quality software names for investment,” Helfstein wrote in a research note to investors.

Consensus among analysts is a Strong Buy based on 9 Buys and 2 Holds. The average Trade Desk price target of $80.55 implies that shares are fully valued at current levels.

TTD scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.

Related News:
BioNTech Q2 Revenues and Earnings Top Estimates; Shares Pop 15%
What Investors Can Learn from Tyler’s Newly Added Risk Factors
Nokia to Supply Next-Generation Optical Transport Network to DELTA Fiber

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles