Share of Transaction desk (NASDAQ: TTD), a data-driven ad technology platform provider, went live Friday. As of 8:35 am EST, stocks have risen more than 25%.
Huge gains in stocks that grew higher after Trade Desk’s third-quarter earnings report, which includes revenue and earnings per share, crushed analysts’ estimates as marketers rose Significantly spend on advertising with their programming.
Trade Desk’s Q3 revenue increased 32% year-on-year to $ 216 million. Not only was this a huge acceleration from a 13% drop in the second quarter, but overall revenue eliminated analysts’ average revenue forecast of $ 180.9 million. This top dynamics combined with The Trade Desk’s scalable business model means adjusted earnings per share have increased from $ 0.75 over a year ago to 1.27 dollars. Analysts, on average, expected corrected earnings per share to be just $ 0.43.
Notably, spending on TV ads connected on The Trade Desk’s platform increased by 100% compared to last year. Marketers are capitalizing on “the mass consumer shift to online TV,” explained The Trade Desk CEO Jeff Green during the company’s third-quarter earnings call.
The other two prominent advertising channels on The Trade Desk’s platform are video and audio on mobile devices, both with annual spending growth of 70%.
So what now
As long as there are no major economic surprises or COVID-19 failures in the fourth quarter, it expects revenue growth to slightly increase during critical periods, the company said.
Its guidance for a record fourth-quarter revenue from $ 287 million to $ 291 million, well ahead of consensus analyst estimates of $ 253 million.