The Trade Desk (TTD) has reported third-quarter financial results that beat Wall Street estimates on the top and bottom lines.
The company, which sells technology that helps with online advertising and marketing, announced earnings per share (EPS) of $0.41, which topped analyst estimates of $0.39. Revenue in the quarter totaled $628 million, which also was above forecasts that called for sales of $620 million.
Looking ahead, The Trade Desk said that it expects revenue in the current fourth quarter of $756 million, which is ahead of consensus forecasts of $752 million. Despite the strong results and bullish guidance, TTD stock was down 8% in after hours trading following the print.
Customer Retention Rate
As part of its financial results, The Trade Desk said that its customer retention rate remained above 95% for the tenth consecutive year. The company expanded key partnerships with companies such as Spotify (SPOT) and Roku (ROKU).
Management said that the company repurchased $54 million of its Class A common stock during the year’s third quarter. Despite the after hours pullback, TTD stock is up 73% so far this year.
Is TTD Stock a Buy?
The Trade Desk has a consensus Strong Buy rating among 23 Wall Street analysts. That rating is based on 20 Buy, two Hold and one Sell recommendations made in the last three months. The average TTD price target of $114 implies 13.98% downside from current levels.
