The US listed ad-tech business reported Q3 earnings post-close overnight that beat expectations (mildly), though it does look like the level of growth has slowed a touch.
- Revenue of $US628 million was up +27% y/y and ahead of the $US620 million expected.
- Adjusted EPS 41c versus consensus of 39c, a 6% beat
- Adjusted Ebitda $US257 million, up +29% y/y, estimate $252.6 million
- Total operating expenses $US519.5 million, up +14% y/y but inline with estimates for $519.9 million
TTD has a very strong history of surprising on the upside, beating consensus at every result since 2016 at the EPS level. The ~6% beat overnight was good, but it’s low from a historical standpoint and guidance for Q4 shows a slight slowdown in momentum. They guided to revenue of least $US756 million which compared to existing consensus of $US753m and adjusted Ebitda about $363 million relative to current consensus of $US362 million.
- Clearly the business is performing well, and the results reflect robust connected TV demand, it’s just that expectations are super high for TTD, a function of its own success.
MM remains long & bullish TTD, though we think the bullish run in the stock may stall ~$US132
Add To Hit List
