Companies /Communication Services

Trade Desk Inc - Class A

NASDAQ: TTD Advertising Agencies
$13.78
▲ $0.06 (+0.44%) today
Markets closed · 8:25pm ET

Q2 2023 Earnings

Reported Aug 9, 2023, 4:05pm ET · SEC source
$0.28
Beat +7.69%
EPS · est. $0.26
$464.3M
Beat +2.03%
Revenue · est. $455.0M
+11.3%
Beating market
TTD vs S&P since report
2 quarters
Consecutive EPS misses

Market Reaction

% change · around the report
0+3%+6%+9%Aug 9Aug 10report 4:05pm ETearnings+0.1%+1.4%
0+3%+6%+9%Aug 9Aug 10earnings+0.1%+1.4%
TTD +1.4%S&P 500 +0.1%
0+3%+6%+9%Aug 9Aug 10report 4:05pm ETearnings+0.3%+1.4%
0+3%+6%+9%Aug 9Aug 10earnings+0.3%+1.4%
TTD +1.4%NASDAQ +0.3%
−6%0+6%Aug 8Aug 17report 4:05pm ETearnings−2.4%−9.3%
−6%0+6%Aug 8Aug 17earnings−2.4%−9.3%
TTD −9.3%S&P 500 −2.4%
−6%0+6%Aug 8Aug 17report 4:05pm ETearnings−2.9%−9.3%
−6%0+6%Aug 8Aug 17earnings−2.9%−9.3%
TTD −9.3%NASDAQ −2.9%
−4.74%
Day of report
−3.20%
Next session
−7.65%
One week
+11.30%
30 days

S&P 500 over the same 30 days: +0.02%.

Did TTD Beat Earnings? Q2 2023 Results

The Trade Desk posted a solid beat in Q2 2023, with non-GAAP earnings of $0.28 per diluted share clearing the $0.26 consensus estimate by 7.69%, as revenue climbed 23.2% year over year to $464.25 million. The company also swung to GAAP net income of $32.94 million, compared to a net loss of $19.07 million in the same period a year ago, reflecting stronger operational leverage as higher revenue flowed through an increasingly efficient cost structure. A key driver of the quarter was momentum behind Kokai, the company's AI-powered next-generation platform, alongside continued expansion of Unified ID 2.0, which attracted new integrations from Warner Bros. Discovery, Walmart Connect, and NBCUniversal. Adjusted EBITDA reached $179.57 million, representing a 39% margin, up from 37% a year earlier. Looking ahead, management guided Q3 2023 revenue to at least $485.00 million with adjusted EBITDA of approximately $185.00 million, signaling continued confidence in demand trends across connected TV and retail media channels.

Key Takeaways
  • 23% year-over-year revenue growth to $464 million
  • Customer retention over 95% for nine consecutive years
  • Advances in CTV, retail media, and identity solutions
  • Adjusted EBITDA margin expansion to 39% from 37% year-over-year
  • Non-GAAP diluted EPS of $0.28 vs $0.20 in Q2 2022

“Q2 marked another quarter of outstanding execution and share gains for The Trade Desk, delivering $464 million of revenue and 23% growth. With advances in areas such as CTV, retail and identity, we are helping the world's largest brands buy media on the open internet with more precision and transparency than ever.”

Trade Desk CEO, on the earnings call

Forward Guidance & Outlook

For Q3 2023, The Trade Desk guided to revenue of at least $485 million and adjusted EBITDA of approximately $185 million. The company did not provide a GAAP net income outlook due to the variability and complexity of stock-based compensation expense.

TTD YoY Financials

Q2 2023 vs Q2 2022 · SEC filings Q2 2022 Q2 2023
$0$200.0M$400.0M$377.0M$464.3MRevenue$1.7M$41.7MOperating Income$8.8M$32.9MNet Income
$0$200.0M$400.0MRevenueOperating IncomeNet Income

Figures from SEC filings and company reports. Not investment advice.