The Trade Desk’s Q3 2024 Earnings Exceed Wall Street Estimates Despite Stock Dip

The Trade Desk (TTD) has reported its third-quarter 2024 financial results, surpassing Wall Street estimates on both revenue and earnings per share (EPS). The company, which specializes in technology for online advertising and marketing, announced EPS of $0.41, exceeding analyst estimates of $0.39. Revenue for the quarter totaled $628 million, also beating forecasts of $620 million.

Despite the strong financial performance, The Trade Desk’s stock experienced a significant decline in after-hours trading, dropping by around 8-10% following the earnings report. This dip occurred despite the company’s share price having risen by 73% so far this year.

The Trade Desk also provided bullish guidance for the fourth quarter, expecting revenue of at least $756 million, which is ahead of consensus forecasts of $752 million. Additionally, the company reported an adjusted EBITDA of $257 million for the third quarter, with a net income of $94 million and a margin of 15%.

The company highlighted its robust customer retention rate, which has remained above 95% for the tenth consecutive year. Key partnerships, including those with Spotify and Roku, were also expanded during the quarter. The Trade Desk repurchased $54 million of its Class A common stock during the third quarter.

Wall Street analysts continue to hold a positive outlook on The Trade Desk, with a consensus Strong Buy rating based on 20 Buy, two Hold, and one Sell recommendation in the last three months. The average price target of $114, however, implies a potential downside from current levels..