Data-driven TV Advertising, International Growth Aids Trade Desk's Q2 Revenue Beat; Sees Better Than Expected Q3 Revenue

Advertisement platform The Trade Desk Inc TTD reported second-quarter FY21 revenue growth of 101% year-on-year to $279.97 million, beating the analyst consensus of $257.8 million.
Customer retention remained over 95% Q2, akin to the past seven years.
Margin: The adjusted EBITDA increased 707.5% Y/Y to $117.9 million. The margin expanded by 3,200 bps to 42% as the operating expenses rose 40.5% Y/Y.
Stock-based compensation expense rose 88.8% Y/Y to $45.2 million.
Non-GAAP EPS of $0.18 beat the analyst consensus of $0.13.
Trade Desk generated $85.4 million in operating cash flow during the six months ended Jun. 30, and held $705 million in cash and equivalents.
Growing marketer demand for data-driven TV advertising, brand additions, and robust international growth supported by the launch of trading platform Solimar is likely to drive the company's earnings.
Outlook: The Trade Desk sees Q3 revenue of $282 million, higher than the analyst consensus of $275.3 million.
It sees an adjusted EBITDA of $100 million.
Price action: TTD shares traded lower by 3.30% at $81.10 in the market session on the last check Monday.

Momentum10.45

Growth85.68

Quality87.78

Value17.11

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