Trade Desk Q3 revenue beats analyst estimates

Overview

• Advertising technology platform's Q3 revenue declined yr/yr but beat analyst expectations

• Adjusted EPS for Q3 beat analyst expectations

• Company increased share repurchase authorization by $731 mln to $1 bln

Outlook

• Company expects Q4 revenue of at least $755 mln

• Company expects Q4 adjusted EBITDA of at least $280 mln

• Company says actions taken are aimed at improving long-term growth trajectory

Result Drivers

• CUSTOMER RETENTION - Co said customer retention stayed above 95% in Q3

• PLATFORM INNOVATION - Co launched new AI-powered features and user experience updates aimed at improving advertiser outcomes

• CTV PARTNERSHIPS - Co expanded connected TV integrations, including new Netflix targeting and measurement capabilities

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 26 "hold" and 7 "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for The Trade Desk, Inc. is $14.00, about 8.3% above its November 6 closing price of $12.93

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 9 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)