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Home / Business / Why shares of Trade Desk soared on Friday

Why shares of Trade Desk soared on Friday



What happened

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.

The chart shows that the stock price is increasing

Photo source: Getty Images.

So what

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.




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