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Trade Desk expects revenue above estimates in the first quarter, ending in March.
The time of dreams
Ad tech firm Trade Desk started Wednesday with a beating in earnings and an upbeat forecast that sent shares soaring, but gains melted away moments after Google outlined plans for new privacy restrictions on Android devices. .
Commercial counter (ticker: TTD) the stock was down 2.6%, at $78.46, midday; the shares were up in premarket trading. Other actions that rely on tracking consumer behavior to target advertising have also felt the pain:
Metaplatforms (FB),
Break (SNAP) and
Twitter (TWTR) were all down around 3%.
Trade Desk, a digital ad buying platform, earned an adjusted 42 cents per share in the fourth quarter ending December, better than the 27 cents analysts had expected. Revenue totaled $395.6 million, a 24% increase over the same period last year, and beat analyst estimates of $389.2 million.
“We exceeded our 2021 targets and I couldn’t be more excited about the momentum we’re building into the first quarter and year ahead,” CEO Jeff Green said.
The Ventura, Calif.-based company expects first-quarter revenue of at least $303 million, ahead of analyst forecasts of $287 million. Adjusted earnings before interest, taxes, depreciation and amortization are expected to be about $91 million, about $10 million higher than analysts’ estimates.
KeyBanc analyst Justin Patterson said first-quarter guidance indicates the company is on track for more than 30% year-over-year revenue growth in the fiscal year. 2022. For the year 2021, Trade Desk reported revenue of $1.20 billion, a 43% increase over the previous year. Analysts followed by
set of facts expect $1.19 billion in sales in fiscal 2022.
Stifel analyst Mark Kelley said Barrons that Google’s announcement weighs on all digital advertising. What will happen now is “when someone clicks on an ad and buys a product, the cookie data will no longer be sent back to the advertiser,” he said. “It’s a loss of signal for the advertiser.”
Nevertheless, since the new restrictions will affect all businesses connected in one way or another with digital advertising, Trade Desk should not lose money: “The competitor is facing the same problem,” said Kelley . He has a Hold rating on the stock and a price target of $68.
Vasily Karasyov, CEO of Cannonball Research, confirmed that the stock’s decline “is certainly not a reaction to the quarterly report or forecast; both were good. He rates the stock as long and has a price target of $110.
Write to Karishma Vanjani at [email protected]
