Back to top

Image: Bigstock

The Trade Desk (TTD) Q4 Earnings and Revenues Top Estimates

Read MoreHide Full Article

The Trade Desk (TTD - Free Report) reported fourth-quarter 2021 non-GAAP earnings of 42 cents per share, beating the Zacks Consensus Estimate by 45%. The bottom line increased 14% from the year-ago quarter’s levels.

Revenues of $395.6 million also surpassed the Zacks Consensus Estimate by 1.5%. The top line increased 23.8% year over year and 31.6% from the second quarter’s levels.

The results were driven by solid customer retention, which remained more than 95% in the reported quarter.

During the quarter, the company partnered with Xiaomi, the second-largest smartphone maker in the world that allows advertisers to access Xiaomi’s global audience through its mobile ad offerings directly via The Trade Desk platform.

The Trade Desk expanded its partnership with Comcast (CMCSA - Free Report) -owned NBCUniversal, adding Peacock to its industry-leading CTV platform.

As a result, the world’s leading advertisers will have access to Comcast’s premium Peacock video-on-demand inventory via The Trade Desk, including NBC Sports, NBC and Sky News, NBC Next-Day Prime, Peacock originals and an extensive catalog of content.

The Trade Desk Price, Consensus and EPS Surprise

 

The Trade Desk Price, Consensus and EPS Surprise

The Trade Desk price-consensus-eps-surprise-chart | The Trade Desk Quote

 

Operating Details

For the reported quarter, adjusted EBITDA margin was 48.4%, which expanded 600 bps from the previous-year quarter’s levels.

Platform operations expenses were $66.9 million, up 29.4% year over year.

Sales & marketing expenses increased 23.4% from the prior-year quarter’s levels to $72.5 million. Technology & development expenses of $62.8 million and general & administrative costs of $218.8 million increased 29% and 302.4% year over year, respectively.

As a percentage of revenues, platform operations and technology & development, and general & administrative expenses expanded 80 basis points (bps), and 70 bps, respectively. As a percentage of revenues, general and administrative expenses increased by 38.3% year over year. As a percentage of revenues, sales and marketing expenses were breakeven year over year.

Loss from operations amounted to $25.4 million, down 123.8% year over year. As a percentage of revenues, the metric decreased by 33.3% year over year.

Balance Sheet

As of Dec 31, 2021, cash and cash equivalents were $754.15 million compared with $576.9 million on Sep 30, 2021.
 
Short-term investments were $204.63 million at the fourth quarter-end, down from $221.69 million at the third quarter-end.

Guidance

For first-quarter 2022, The Trade Desk expects revenues of $303 million. The Zacks Consensus Estimate for the same is projected at $287.2 million.

Additionally, the company anticipates adjusted EBITDA to be $91 million.

Zacks Rank & Stocks to Consider

Currently, The Trade Desk has a Zacks Rank #3 (Hold).

Some better-ranked stocks from the Zacks Computer and Technology sector are Agilent Technologies (A - Free Report) and Zscaler (ZS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent is scheduled to report first-quarter 2022 results on Feb 22.

A is up 3.9% in the past year against the Zacks Electronics - Testing Equipment industry’s decline of 5.2% and the Consumer Discretionary sector’s fall of 1% in the past year.

Zscaler is set to announce second-quarter fiscal 2022 results on Feb 2.

ZS is up 25% in the past year compared with the Zacks Electronics - Parts Distribution industry’s rise of 6.2% and the Computer and Technology sector’s increase of 1%.

Published in