Programmatic ad-buying company The Trade Desk (TTD 4.42%) has put a date on its third-quarter earnings report. The company will release its most recent quarterly results on Nov. 7.
Given a combination of The Trade Desk's powerful underlying business momentum (including rapid earnings growth) and the stock's recent sell-off, the company is worth watching when it reports its latest results. Shares have plummeted 35% in the past two months alone. Of course, that was after a torrid run-up in which the stock surged more than 200% in the 12 months leading up to late July when shares peaked.
In early November, The Trade Desk will get a chance to prove to investors that its growth story remains robust. Can the growth stock impress once again?
Ahead of The Trade Desk's earnings report, here's an early look at some of the key narratives investors will want to watch.
Revenue and profits
Both The Trade Desk's top and bottom lines have been seeing staggering growth. In 2018, total revenue increased 55% year over year -- an acceleration from 52% revenue growth in 2017. Net income in 2018 was up 73%, translating to earnings per share of $1.92. Non-GAAP (adjusted) earnings per share during the period increased 69% year over year, to $2.70.
More recently, The Trade Desk's growth has slowed, but it's still impressive. Revenue for the six-month period ending June 30 rose 42% year over year. Non-GAAP (adjusted) earnings per share increased 52% over the same time frame.
In The Trade Desk's third quarter of 2019, investors should expect more robust top- and bottom-line growth. Management guided for third-quarter revenue and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $163 million and $45 million, respectively. These figures imply 37% revenue growth and 23% adjusted EBITDA growth.
CTV ad spend growth
Another key figure worth checking on will be the growth in ad spend in the company's connected TV (CTV) channel. This has been a significant growth driver for the company, with ad spend rising 150% year over year in Q2.
But this growth is notably well below where it was just a few quarters ago. In the fourth quarter of 2018 and the first quarter of 2019, CTV ad spend increased 525% and 200%, respectively, year over year.
Adjusted EBITDA guidance
Finally, investors should check on The Trade Desk's guidance, particularly its outlook for adjusted EBITDA. The company has raised its outlook for 2019 adjusted EBITDA in both quarters reported since the forecast was initiated in The Trade Desk's fourth-quarter update in February.
Initially, The Trade Desk expected 2019 adjusted EBITDA of $182 million, or 29% of revenue. As of the company's second-quarter update, however, The Trade Desk guided for full-year adjusted EBITDA of $201 million, or 30.8% of revenue.
Will The Trade Desk lift its outlook for this key metric again? Tune in after market close on Thursday, Nov. 7 to see how the company performed in its third quarter.