Trade Desk stock jumps on positive Q4 sales, Q1 outlook
The Trade Desk (TTD) shares are moving higher on Friday morning as the company posted its fourth-quarter results, revealing sales for the quarter jumped 23% year-over-year. In addition, the company posted first-quarter revenue guidance of $478 million, topping most Wall Street expectations.
Yahoo Finance Anchors Rachelle Akuffo and Madison Mills break down the latest development for the company and what it could mean moving forward.
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Editor's note: This article was written by Nicholas Jacobino
Video Transcript
RACHELLE AKUFFO: The Trade Desk shares jumping higher after seeing sales climb 23% from a year ago and giving an outlook for the current quarter well above expectations. The company's CEO saying the results are a testament to the growing value that advertisers are placing on the open internet. So with this revenue beat and this upbeat guidance, some of the modeling that they're looking at for their outlook.
At least, 704-- sorry, 478 million in revenue for the first quarter along with about $130 million in adjusted EBITDA much higher than the street was predicting here. And for people who aren't familiar with this company, they basically help other tech companies with targeted advertising across different mediums, whether it's streaming or connected TVs. And clearly seeing a lot of room to run here.
MADISON MILLS: And to your point, different mediums. That seems to be the key differentiator between the Trade Desk and other players in the space. And it was interesting, it looks like they've been up about 10% in the past couple of months even leading into this report. And then you can see on the chart here just that boom after we saw that earnings print overnight here. But it's interesting when you compare this name to what we were talking about earlier with Roku.
Clearly an indication here that the digital advertising market has legs. But we're seeing some other names in the space not being able to capitalize on that. So it seems like there's maybe a bifurcation in who's able to get some more juice to squeeze out of this market.
RACHELLE AKUFFO: It's true. We saw on the earnings call Jeff Green the CEO saying more and more of the world's leading advertisers are gravitating to channels and partnerships that offer precision and premium value at scale such as connected TV and retail media. We're still continuing to see this personalization. And we saw that when we were speaking to some of the analysts talking about Super Bowl advertising.
Depending on where you were and which region you're in, the really hyperfocused targeting there of ads which appears to be paying off here. They were saying that nearly all areas of digital advertising in 2023 outpaced. We're almost looking at $1.95 billion of revenue. That's 23% growth year over year, a record $9.6 billion of spend on their platform there.
MADISON MILLS: I wish that it would get a little less targeted when it comes to my Instagram ads because that would be better for my consumer spending and my personal inflation print. But to your point, it's definitely making a big difference when it comes to the broader earnings picture which I know is what we care more about than my personal earnings picture.
RACHELLE AKUFFO: All finance is personal, the algorithm knows how to get all of us.
