LOS ANGELES - The Trade Desk Inc . (NASDAQ: NASDAQ:TTD), a leading technology platform for advertising buyers, reported a robust first quarter with earnings and revenue surpassing Wall Street estimates, and provided guidance for the second quarter that also exceeded analyst expectations.
The company's shares saw a modest increase of 0.6% following the announcement, indicating a positive but restrained market response.
For the first quarter ended March 31, 2024, The Trade Desk posted adjusted earnings per share (EPS) of $0.26, outperforming the analyst consensus of $0.22. Revenue soared to $491 million, a significant jump from the consensus estimate of $479.66 million and marking a 28% growth compared to the same quarter last year.
Jeff Green, Co-founder and CEO of The Trade Desk, attributed the strong quarter to the company's expanding presence in connected TV (CTV) and the growing adoption of its Unified ID 2.0 (UID2) framework, among other technological advancements.
"Our outstanding performance to start the year underlines the value advertisers are placing on premium inventory on the open internet," Green said.
Looking ahead, The Trade Desk forecasts second-quarter revenue to reach at least $575 million, which is above the analyst consensus of $567 million. The company also expects adjusted EBITDA to be around $223 million.
While the company did not provide specific GAAP Net Income guidance, the positive outlook on adjusted EBITDA suggests continued operational efficiency and profitability.
The company's customer retention rate remained over 95% during the quarter, a testament to its strong market position and the high value it provides to its clients. Additionally, The Trade Desk highlighted its successful partnerships and integrations with major networks and ad-supported streaming services, further solidifying its leadership in the CTV marketplace.
The Trade Desk's financial health remains solid, with the company repurchasing $125 million of its Class A common stock in the first quarter. As of March 31, 2024, an additional $575 million was available and authorized for future repurchases, underscoring the company's confidence in its long-term growth prospects.
Investors are likely to keep a close eye on The Trade Desk as it continues to innovate and expand its offerings in the dynamic digital advertising space.
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