The digital advertising technology firm held in the International Equities Portfolio reported 2Q earnings overnight that were ahead of expectations however their all-important guidance was a touch light on pushing the shares down 5% (and a bit more after hours).
Revenue was up 23% to $US464m and earnings increased 40% for the quarter, with EPS of 28cps ahead of the streets 26cps expectation – clearly a great outcome given the complexities in the macro environment that impact advertising. They guided to 3Q revenue of $US485m which was also solid, but bullish analysts were a touch higher. The issue is around expectations and stock performance leading into these results, rather than the results themselves.
TTD is up 80% in 2023 to date and while the guidance for Q3 is solid, it’s not as spectacular as the market was positioned for.
- A classic case of “buy on rumour, sell on fact” with regard to strong earnings and we believe buyers will emerge into this initial dip.
MM remains long & bullish on TTD & would use weakness as a buying opportunity ~US$70
Add To Hit List
