The Trade Desk (TTD 2.93%) pulled off another beat-and-raise quarter, reporting better-than-expected revenue and earnings per share and lifting its full-year revenue outlook. The period highlighted the company's continued momentum in mobile-video, connected-TV, and audio ad spending as marketers look to The Trade Desk's programmatic ad-buying solutions to maximize return on investment.
As investors look over The Trade Desk's just-released third-quarter results, here are some of the most insightful metrics from the period.
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Revenue increased 50%
The Trade Desk's revenue rose 50% year over year to $118.8 million. Impressively, this growth was on top of a 50% year-over-year increase in revenue in the year-ago quarter. On average, analysts were expecting revenue of $117 million.
Earnings per share soared 91%
Highlighting The Trade Desk's scalability, earnings grew faster than revenue. The company's earnings per share increased from $0.23 in the year-ago quarter to $0.44, representing 91% growth. Non-GAAP earnings per share similarly shot higher, rising from $0.35 in the year-ago quarter to $0.65.
The Trade Desk's adjusted earnings per share easily beat a consensus analyst estimate for $0.50.
Connected-TV ad spending was up 10 times
Reinforcing The Trade Desk CEO Jeff Green's ongoing bullish commentary on the massive opportunity for increased ad spending in connected TV, the ad channel was a big catalyst for the programmatic ad platform yet again in Q3. Connected-TV ad spending was up tenfold between the third quarter of 2017 and the third quarter of 2018.
Audio ad spending jumped 192%
Spending on audio ads increased 192% year over year, in line with the 191% year-over-year growth the channel saw in Q2.
Mobile ad spending increased 65%
Ad buyers' spending on mobile ads, including mobile in-app, video, and web channels, was up 65% year over year -- a deceleration from 89% year-over-year growth in Q2.
The Trade Desk expects fourth-quarter revenue of $147 million
Implying 43% growth, The Trade Desk guided for revenue to rise from $102.6 million in the fourth quarter of 2017 to $147 million in the fourth quarter of 2018. This growth rate would beat The Trade Desk's 42% year-over-year growth in the fourth quarter of 2017.
Management guided for $145 million in 2018 adjusted EBITDA
Given The Trade Desk's strong momentum, the company raised its full-year outlook for both revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). The company is now expecting full-year revenue to be at least $464 million, up from a previous forecast for revenue of at least $456 million. Further, management expects full-year adjusted EBITDA to be $145 million, up from a previous estimate for $140 million.
Notably, $145 million in adjusted EBITDA would be a huge jump from the $95 million The Trade Desk achieved in 2017.
