Today, shares of The Trade Desk (NASDAQ:TTD) are trading higher by nearly 10% after reporting earnings earlier this week. It’s safe to say investors were satisfied; TTD stock has surged 13% higher since the close of Nov. 8. For the third quarter, the company reported revenue of $301.1 million, up 39% and beating the Zacks Consensus Estimate by a wide margin. A slew of analyst upgrades followed after earnings.
Of course, investors in TTD stock were concerned that Apple’s (NASDAQ:AAPL) Identifier for Advertisers (IDFA) policy changes would affect Q3 earnings results. However, CEO Jeff Green stated during the earnings conference call that the IDFA changes had no material affect on operations.
That said, Q4 guidance seemed to be a sour spot in the report. The Trade Desk’s earnings report stated that the ad business could be affected by “changing economic conditions or additional shelter-in-place orders that may or may not occur.”
TTD stock has returned an astonishing 95% in the past six months, more than seven times the S&P 500’s return over the same period.
Here are some highlights from Q3:
- The Trade Desk reported net income of $59.4 million, up 44% year-over-year (YOY).
- Income from operations was $80.4 million, up 88% YOY.
- The adjusted EBITDA margin was 41%, up from 36% a year earlier.
- Earnings per share (EPS) of 18 cents beat estimates by 12.5%.
- Cash and cash equivalents came to $576.9 million, up from $476.9 million in June.
- Customer retention remained above 95%
- The Trade Desk issued Q4 revenue guidance of at least $388 million, while the Zacks Consensus Estimate for Q4 revenue is $390 million.
TTD Stock Price Predictions
Let’s now take a look at a few price targets from Wall Street analysts.
- Wells Fargo has a price target of $120 on TTD stock. Analyst Brian Fitzgerald believes The Trade Desk has an array of possible catalysts and that the IDFA changes and supply-chain issues did not affect the company materially.
- RBC Capital has a price target of $105. Analyst Matthew Swanson notes that the company delivered a “strong quarter,” and that The Trade Desk is well positioned to expand international connected TV (CTV) exposure.
- Oppenheimer has a price target of $100. Analyst Jason Helfstein is impressed by the company’s “leadership position within the Open Web” and sees potential upside to guidance given for Q4 due to the holiday season.
- Keybanc also has a price target of $100. Analyst Justin Patterson states that The Trade Desk’s strong Q3 results reinforces the resiliency of its model and that the business has multiple tailwinds to power future earnings.
- The average price target from 19 analysts covering TTD stock is $92.58
Here’s what investors are saying on Twitter (NYSE:TWTR) about the stock and its prospects:
Think we can all agree that the advertising industry keeps shifting to digital as the marketers realize the value, potential and efficiency it brings $TTD is exceptionally well positioned for future growth. @KreizJordy @FromValue @StockMarketNerd @Couch_Investor @OphirGottlieb
— Max Bosenko (@MaxTheComrade) November 11, 2021
$TTD Q3 2021 Earnings 👇 “Revenue growth of 39% significantly outpaced worldwide programmatic advertising growth. The world’s leading brands and agencies are increasingly using our platform to apply data-driven strategies to drive precision and value across their campaigns”. pic.twitter.com/oQOqBSMVgh
— Max Bosenko (@MaxTheComrade) November 8, 2021
— MaybeABot (@MaybeABot5) November 12, 2021
Revenue up 39.3% to $301.1M, $17.17M (6%) above the consensus! 🚀
EPS $0.18 beats by $0.03
GAAP EPS of $0.12 beats by $0.01
Shares up almost 20% at this moment pre-market. 🤑🚀 pic.twitter.com/iTtNFRHDGn
— From Growth To Value (@FromValue) November 8, 2021
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.