The provider of a cloud-based technology platform for ad buyers topped third-quarter revenue and earnings estimates by a wide of $34 million and $0.82 per share. The company says consumers shift towards online platforms for shopping and watching movies has substantially increased demand for online ads. And, this shift has been resulting in massive revenue and profits for Trade Desk.
Stronger ad revenue supports TradeDesk stock
Trade Desk stock price soared almost 140% since the beginning of this year amid robust growth in ad revenue. Its third-quarter ad revenue came in at $216 million, up 34% from the past year period. The company says advertising spend on connected TVs grew 100% year over year in the third quarter, while spending on audio and mobile video grew 70%. It has also reported a strong customer retention rate of 95%.
Rosy outlook and higher price targets back bullish sentiments
The company anticipates sustainable growth in financial numbers in the coming quarters. It anticipates fourth-quarter revenue in the range of $290 million, in line with analyst’s expectations of $280 million. The adjusted EBITDA is likely to stand around $115 million. Needham has set Buy ratings, calling the stock a top pick for 2020. The firm has provided a price target of $750, with a bullish outlook for revenue and earnings growth.
