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Home / Business / The Trade Desk takes the pace in Q1 – The Motley Fool

The Trade Desk takes the pace in Q1 – The Motley Fool



Growth begins to accelerate The Trade Desk (NASDAQ: TTD) . The shares of the fast-growing specialist in programmatic advertising initially moved significantly higher, after the company had come out of business better than expected after the close on Thursday.

Revenue increased 61% to $ 85.7 million in the first quarter, up $ 73 million, or just 37%, in revenue growth forecast for the end of February. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) more than tripled, increased 202% to $ 18.9 million. The Trade Desk modeled on its previous projections only adjusted EBITDA of $ 7.5 million.

Adjusted earnings nearly doubled 96% to $ 1

5.3 million, or $ 0.34 per share. The Trade Desk has never offered a guideline, but it's safe to say that no one would earn more than double the $ 7.5 million it spent on Adjusted EBITDA for the quarter less than three months ago.

  The trading venue in its trading debut in 2016.

Image source: The trading venue

Marketing issues

The trading center proves that even the cumbersome advertising industry can be disturbed and thereby create a monster growth stock. The The Desk Desk stocks have more than tripled since they traded at $ 16 on Thursday at the close in 2016, and that was before the pop-up result.

The magic of the trade desk is that the demand-side platform uses data and its proprietary targeting algorithm to allocate marketing budgets across display, mobile, and video advertising campaigns. It works out. The Trade Desk continues to put big and small brands on its platform. Customer loyalty is a matter of course, as The Trade Desk has held at least 17% of customers in 17 consecutive quarters.

The Trade Desk does not stand still. As impressive as growth of 61% may be – a break of the past three quarters with slower growth year-on-year – some segments are growing even faster. Total mobile, mobile video and mobile in-app revenue grew 95%, 160% and 110%, respectively. Newer channels, including connected TV and audio, are growing at even higher clips. The trading center has also made its profits internationally known, a big deal, since the lion's share of its sales continues to be generated near home.

Of course, the trading office is migrating its previous guidance. Full-year revenue for 2018 is expected to be at least $ 433 million. This corresponds to an earlier goal of $ 403 million. Now there is $ 133 million in adjusted EBITDA, a neat upgrade from the $ 117 million forecasted in February. The guidance for the current quarter requires adjusted EBITDA of $ 30 million and revenue of $ 103 million. The Trade Desk and its data-driven approach are of interest to marketers, and the evidence for that is tremendous growth.

Rick Munarriz is not represented in any of the aforementioned equity positions. The Motley Fool owns shares in and recommends The Trade Desk. The Motley Fool has a disclosure policy.


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