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EPS came in at $0.28, compared to the consensus estimates of $0.26. Revenue grew 23% year-over-year to $464 million, beating the consensus estimate of $454.71M. Customer retention remained over 95% during Q2, as it has for the past nine consecutive years.
“With advances in areas such as CTV, retail and identity, we are helping the world’s largest brands buy media on the open internet with more precision and transparency than ever. With the launch of Kokai, we are surfacing that value more intuitively and putting data next to every decision,” said CEO Jeff Green.
For Q3/23, the company expects revenue of at least $485M, above the consensus estimate of $479.61M. Adjusted EBITDA is expected to be approximately $185M.
Susquehanna analysts said the company delivered a strong beat and raise quarter, while “forward setup looks particularly compelling.”
“TTD reported another strong quarter and guide with 23% y/y revenue growth, highlighting continued share gains in the digital advertising ecosystem. As we look ahead, we see the setup as extremely attractive with a plethora of drivers in play, including CTV, shopper marketing, international, Kokai, UID2, OpenPath, and the political cycle in 2024. We continue to view TTD as a must-own, multi-year, multi-pronged growth story,” analysts said.
BTIG analysts are also positive on the TTD story. They recently upgraded the stock on the back of an improving ad market.
“While 2Q/3Q growth appears to be consistent with the ~25% industry rate per our checks, call commentary suggested that as sentiment/visibility improves, marketers may be doubling down on data-driven advertising, and that suggests some potential for an accelerating shift of spend into the programmatic ecosystem. We don’t need that to happen to maintain a favorable view of the setup, though an accelerated programmatic shift, coupled with TTD’s CTV + Retail Media position, could translate to faster growth and upside vs. our current base case,” analysts wrote.
Additional reporting by Senad Karaahmetovic
