Trade Desk Q2 EPS $0.95 Beats $0.69 Estimate, Sales $159.9M Beat $155.64M Estimate
Raises Guidance.From $645M To $653M
The conference call will be interesting.
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And down more than $16/share in after hours trading.
Not as good as the market if hoping for
saying how much they are up/down by dollar amount doesn’t really tell a story.
They were up 16% today during the day, or $16.
AH, they are down almost 5% or $13.
So basically, they are, like, still higher than yesterday’s close.
I expected about 42% growth, and that is what they posted.
As expected, they increased guidance again:
“As a result, we are raising our 2019 revenue guidance to be at least $653 million. At the same time, we are continuing to make large investments in areas critical to our future. We now expect our adjusted EBITDA to be $201 million for 2019.”
Continued profitability, 40%+ growth at scale (run-rate over $600m), continued 95%+ client retention.
This is all prior to any impact from the Amazon partnership, or before China becomes material.
The growth is simply the secular tailwinds of the mammoth move from traditional to programmatic across everything from newspapers to online, tv to streaming, radio to digital audio, banner ads to targeted ads, etc etc
Dreamer
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meant up 5-6% today, or 16 dollars. Basically a wash.
(loathe the lack of edit feature)
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Conference call is kicking off right now…
The shares have been volatile up and down, interesting to see where they will settle.
But in context the move up or down is not very large, especially compared to their typical earnings drop or raise in share price.
My Key takeaways from the earnings call:
Connected TV (CTV) growth: 2.5x yoy growth
Audio spend: 270% yoy growth
APAC business is growing rapidly - Vietnam growing reveue at 150% oyo for example.
Mobile advertising growing +50% yoy.
Jeff Green says we are the very beginning of the CTV story. Jeff expects Amazon’s decision to open up their advertising platform will apply pressure on Alphabet and Facebook to do the same.
About the Amazon deal: Trade Desk can get Amazon’s data to help improve content matching / targeting. This makes the CTV much more attractive than linear TV, and will drive advertising revenue into CTV and away from linear TV. Trade Desk, as an independent player (as opposed to Amazon who stock advertisers products, ship their products, store their data), is more attractive to handle advertiser spend, because they are not conflicted.
Trade Desk sees itself as a leader in the open internet, driving value for users and advertisers. Making the internet transparent and fair. Jeff says they have addressed regulatory risks with ensuring consumer privacy / user data is anonymised, and having a transparent platform. This is important, due to the attention Alphabet and Facebook are getting in this area. I like how trade Desk is built on transparency and integrity, a big differentiator in advertising.
Trade Desk Unified ID Adoption: 60% of top 100 companies. Jeff says he expects it to become ubiquitous over time.
Advertising on walled gardens has the disadvantage that the data never leaves the walled garden, and cannot be shared across other advertising channels. Trade Desk addresses this, and this is why advertising is growing faster on the open internet.
Regards,
Sean
Long TD
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