After Hours Alert: Why Trade Desk Shares Are Ripping

The Trade Desk Inc TTD reported second-quarter revenue growth of 34.6% year-over-year to $377 million, beating the consensus of $364.87 million.

Customer retention remained over 95% for the quarter. Income from operations fell to $1.74 million, from $61.95 million a year ago. 

Adjusted EPS improved to $0.20 from $0.18 in 2Q21, in line with the consensus of $0.20. Adjusted EBITDA increased by 17.8% to $139 million, and margin contracted by 530 bps to 36.9%. 

TTD’s net cash provided by operating activities year-to-date totaled $237.96 million, compared to $85.44 million a year ago. 

3Q22 Outlook: Trade Desk expects revenue of at least $385 million vs. consensus of $382.58 million and Adjusted EBITDA of ~$140 million.

“We continue to invest to drive future growth in key areas such as identity, Connected TV, retail media and supply chain optimization. In each of these areas, we signed major new partnerships with some of the world’s leading publishers, broadcasters, retailers and technology partners in the second quarter,” commented Jeff Green, Co-founder, and CEO of The Trade Desk. 

Price Action: TTD shares are trading higher by 16.80% at $63.65 during the post-market session on Tuesday.