With all the enthusiasm for the Trade Desk I decided to take another look with the idea of perhaps taking a position. I am still thinking about it but I have some questions for you experts.
First, the percent revenue increases for 2015, 2016, and 2017, were:
156 78 52
Does that sequence bother anyone?
Second, for the first two quarters this year the increase in revenue was 56% but the increase in EPS was only 34%, which seems like negative leverage rather than positive leverage. Any explanations?
Third, the 15% increase in EPS this quarter from 52 cents to 60 cents is the smallest percentage increase that I could find for this company… ever!!! (At least going back three years worth of quarterly reports). This was with a 54% increase in revenue. What’s going on?
Fourth, aside from a bunch of SaaS stocks having big rises early in the week, what made this company jump $35 after earnings? Were expectations that low? I’m having trouble figuring this out. I know they are a good company but why the big rise following a quarter when the revenue growth fell sequentially from 61% to 54%, and was flat with the year before, where the EPS growth dropped from 89% to 15% sequentially, and from 125% to 15% year over year! (No misprint). Where was the blow-out quarter? Management was enthusiastic, but they always have been. No change. Some small increases in guidance. To be expected. Please someone explain to me what I’m missing. I actually am disappointed because I wanted to like this company and find some reason to jump in. I guess the enthusiasm was contagious.