Online ad-tech company Trade Desk (NASDAQ: TTD) reported higher earnings and revenues for the second quarter of 2019, which also exceeded Wall Street’s estimates. The management revised up its guidance for fiscal 2019. The company’s stock dropped during Thursday’s after-hours session, immediately after the report.
The Ventura, California-based company reported adjusted profit of $45.6 million or $0.95 per share for the June quarter, compared to $27.2 million or $0.60 per share last year. Reported earnings moved up to $0.58 per share from $0.43 per share in the second quarter of 2018.
The bottom-line growth was driven by a 42% increase in revenues to $159.9 million. The results also came in above analysts’ forecast. Continuing the trend seen over the last several quarters, the company maintained its customer retention rate above 95%.
Mobile Leads
The Mobile channel continued to perform well and represented about 47% of gross spend. Mobile Video spend and Mobile In-app spend grew 50% and 63% respectively during the quarter. Also, there was a sharp increase in Connected TV spend and Audio spend.
Also see: Higher revenues lift Viacom’s Q3 earnings
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“We are in the midst of the digitization and transformation of TV advertising, and we are uniquely positioned to help advertisers and TV content providers become more data driven in everything they do. We are helping to drive transparency across the ad ecosystem, including CTV, which is improving advertiser confidence and driving demand,” said Jeff Green, CEO of Trade Desk.
Outlook
For the third quarter, the management expects revenues of $163 million and adjusted EBITDA of $45 million. The current revenue estimate for the whole of 2019 is $653 million, up from the previous guidance of $645 million. The outlook for full-year adjusted EBITDA has been revised up to $201 million from the earlier outlook of $188.5 million.
Shares of the company closed Thursday’s regular session higher. Since the beginning of 2019, the stock’s value more than doubled.