Shares of The Trade Desk Inc (NASDAQ:TTD) soared Friday, a day after the advertising technology group whizzed past second-quarter earnings and revenue estimates on sales of its technology to support television and mobile advertising.
The company posted second-quarter net income of US$19.3mln or, $0.43 per share. On an adjusted basis, its earnings swung to US$0.60 per share on revenue of US$1112.3mln.
The results trounced the expectation of Wall Street analysts who had expected earnings of US$0.44 per share on revenue of US$104mln.
Investors cheered the results, sending Trade Desk shares up 24.6% to US$116.46 in morning trade.
The company's clients look for new digital advertising tricks
In a statement, CEO Jeff Green said the company’s clients were looking for new ways to press forward with digital advertising.
“We continued to see marketers spend disproportionally more with The Trade Desk as they look beyond the few search and social sites that historically captured the most advertising dollars,” Green said in a statement.
In the quarter, The Trade Desk launched three products which help advertisers use data to buy digital media. The first of these is Koa, which uses artificial intelligence to provide a forecasting engine to help media buyers widen their audiences.
Trade Desk now forecasts that its revenue will climb to US$116mln in the third quarter and to US$433mln for the year.
Based in Ventura, California, The Trade Desk provides a self-service cloud-based platform that allows ad buyers to better manage advertising campaigns across an array of formats, including audio, video and social media.
Contact Ellen Kelleher at ellen@proactiveinvestors.com