The Trade Desk - Cloud-Based Advertising Technology Platform for Buyers.
TTD Reported FQ1 2022 on May 10:
https://seekingalpha.com/pr/18787328?source=content_type%3Ar…
https://seekingalpha.com/article/4509838-trade-desk-inc-ttd-…
A Few Data Points:
Current Price: $51.92
Range: 39.39 - 114.09
About 54% Below its High
Market Cap: $25.25B
YTD Momentum: -42%
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- For the first quarter, revenue grew 43% compared with last year, our fastest first quarter growth rate in the last 4 years: ATTA BOY!
Note: This represents and re-acceleration from Y/Y RGrow in the previous QTR of 23.6%.
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Solimar adoption is over 80%, and we continue to see promising results as customers are utilizing Solimar to leverage more data elements than they did previously. More data-driven precision improves ROI for customers, and we believe this helps spin the flywheel of our business faster: ATTA BOY!
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With the durable top line performance in Q1, we generated $121 million in adjusted EBITDA or about 38% of revenue. The $121 million in adjusted EBITDA represents a 72% increase from a year ago: ATTA BOY!
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Geographically, North America represented 88% of spend and international represented 12% of spend. International’s overall share, while relatively small for our overall business, dropped slightly from Q4 and the prior year: OH POOP!
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In terms of the verticals that represent at least 1% of our spend, nearly all of them grew in the double digits during the quarter. Both travel and pets more than doubled compared with a year ago. Shopping and food and drink were also very strong. We believe there is still the potential for share gain and improvement in most of our verticals: ATTA BOY!
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Turning now to expenses. Excluding stock-based compensation, operating expenses were $207 million in Q1, up 30% year-over-year: OH POOP!
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Adjusted net income for the quarter was $105 million or $0.21 per fully diluted share. Net cash provided by operating activities was $146 million for Q1, and free cash flow was $136 million: ATTA BOY!
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Turning to our outlook for the second quarter. We estimate Q2 revenue to be at least $364 million, which would represent growth of 30% on a year-over-year basis: Oh POOP!
Note: Expectations were for a slightly higher revenue figure.
- Market Reaction to Report: OH POOP!
https://seekingalpha.com/news/3836213-the-trade-desk-drops-a…
Question from Analyst:
"And Blake, Q2 EBITDA implies a pretty big sequential and year-on-year drop, I think, to that 33%. Can you maybe just flesh out the biggest areas of investments and whether there is a typical kind of conservative built into that or – and just how should we think about that for the remainder of the year? "
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TTD ER SCORE: ATTA BOYS 5/OH POOPS 4
LIST and RANKING Assignments: Purgatory #2
Here’s the thing about TTD: Their glory days may be over but they are still a solid company with a decent future. In particular, the last part of this year is election season and should create a firestorm of AD business. So…would I include TTD in my concentrated high growth portfolio? Well…no - BUT, if I had one of those really fat Motley Fool 25 stock portfolios I would consider it. All just an amateur opinion of course.
All the Best,