- The Trade Desk recently announced its third-quarter earnings where CEO Jeff Green revealed growth opportunities in connected TV
This past week, online advertising company The Trade Desk (TTD) reported its third-quarter earnings. TTD beat analyst estimates and then the company raised its full-year outlook. Strong demand for programmatic advertising from brands and agencies drove the strong third quarter.
TTD is a demand-side platform (DSP), which is used by the agencies and brands to buy digital ads through an automated platform. Plus TTD is also seeing strong growth from ad channels with increased spend in mobile videos, connected TV, and audio.
Revenue for the third quarter increased 38% year-over-year to $164.2 million. Analyst forecasts were pegged at between $163 million and $164 million. And the earnings per share increased 15% year-over-year to $0.75 — which is above the estimate of $0.67. Plus the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 30% year-over-year to $47.8 million.
The full-year outlook was reported of “at least” $658 million. This is up from a previous forecast of $653 million. And TTD is expecting a full-year adjusted EBITDA of $209 million (31.8% of revenue).
“Revenue growth of 38% significantly outpaced worldwide programmatic advertising growth,” said The Trade Desk founder and CEO Jeff Green during the earnings call via Fool.com. “The world’s leading brands and agencies are increasingly using our platform to apply data-driven strategies to drive precision and value across their campaigns.”
TTD’s mobile video and mobile in-app ad spend jumped 50% and 58% year-over-year, respectively. And advertiser spend in audio increased 160% year-over-year. Plus spending in connected TV grew 145% year-over-year. TTD has connected TV deals with Amazon, Comcast, Disney, and Roku. And Green believes that Netflix will eventually move to an ad-supported option at a lower monthly price.
“TV advertising is the largest campaign segment for many leading brands, and the digitization of TV is driving advertisers to apply data to TV ad campaigns for the first time,” added Green via Fool.com. “As more broadcasters make their content available via streaming services, we are better positioned than anyone to take advantage of this significant shift.”
