Trade Desk misses Q2 profit, revenue estimates; shares tumble
Trade Desk misses Q2 profit, revenue estimates; shares tumble
Overview
US ad tech platform's Q2 revenue rose 3% yr/yr, missing analyst expectations
Adjusted EPS for Q2 missed analyst expectations
Company repurchased $78 mln of shares in Q2
Stock down over 20% in after-hours trading
Outlook
Trade Desk sees Q3 revenue at least $650 mln
Company expects Q3 adjusted EBITDA of approximately $160 mln
Company says marketers face complex environment, boosting demand for decisioning and AI
Result Drivers
MARKET COMPLEXITY - Co said marketers are navigating a complex environment, increasing the need for decisioning, measurement and AI
CUSTOMER RETENTION - Customer retention remained over 95% during the quarter, as it has for over a decade
PARTNERSHIPS & INTEGRATIONS - Co cited new partnerships and integrations in commerce media and connected TV as business highlights
Company press release: ID:nBw5NvpQ2a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | $715 mln | $751.39 mln (30 Analysts) |
Q2 Adjusted EPS | Miss | $0.34 | $0.40 (17 Analysts) |
Q2 EPS |
| $0.14 |
|
Q2 Net Income |
| $64 mln |
|
Q2 Adjusted EBITDA Margin |
| 34.00% |
|
Q2 EBIT |
| $101.58 mln |
|
Q2 Pretax Profit |
| $113.09 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 15 "strong buy" or "buy", 20 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the software peer group is "buy."
Wall Street's median 12-month price target for Trade Desk Inc is $25.00, about 31.9% above its August 5 closing price of $18.96
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago
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(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.)