The Trade Desk Shares Rise After Strong Third Quarter Financials
Nov 8, 2021 By MarketDepth
The Trade Desk, Inc. (NASDAQ: TTD) stock jumped more than 25% Monday after the Company announced financial results for its third quarter ended September 30, 2021.
Pandemic Increased Demand
The Trade Desk operates a self-service cloud-based platform that allows buyers to create, manage, and optimize data-driven digital advertising campaigns in various ad formats and channels, including display, video, audio, in-app, native and social, and on various devices, such as computers, mobile devices, and connected TV. Now the Company indicates that it has been impacted by the COVID-19 pandemic that has significantly impacted advertiser demand. Yet, according to the earnings report, The Trade Desk customer retention remained over 95% during the quarter, as it has for the previous 7 years.
“We again delivered outstanding performance in the third quarter. 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. More data-driven choices by advertisers led to record third quarter revenue of $301.1 million and adjusted EBITDA of $122.7 million. With the launch of Solimar, we are working with the industry to pioneer even greater data-driven precision, whether it’s the application of shopper data in a measurement marketplace, surfacing the right data for every advertising impression, or new approaches to identity that help advertisers make the most of their own valuable data. As a result, we’re seeing growth across all channels, and none more so than Connected TV, as viewers shift to new digital, streaming services and advertisers apply data to TV ad campaigns for the first time.”Jeff Green, founder and CEO of The Trade Desk
In addition, The Trade Desk is building support for Unified ID 2.0 (UID2), a new industry-wide approach to identity that preserves the value of relevant advertising, while putting user control and privacy at the forefront.