The Trade Desk Inc. (NASDAQ: TTD) shares skyrocketed by 33.74% shortly after the opening bell on Friday after topping its second quarter financial result estimates. Shares have now increased 171.70% this year.
For the second quarter, Trade Desk reported revenue of USD 112.3 Million, increasing 54.3% year over year and surpassing analysts’ estimates by USD 8.31 Million. The Company reported an EPS of USD 60 cents, beating analysts’ estimates by USD 16 cents.
Trade Desk continued to see strong growth for its Omni-channel solutions. The mobile segment grew by 89%, while Mobile gross spending increased by 45%, the highest ever. Connected TV doubled, audio grew by 191%, mobile video grew by 156% and mobile in-app grew by 104%.
The increasing revenue growth is attributable to the Company’s customer retention rate. Trade Desk’s customer retention remained over 95% for the quarter, as it has been for the past 18 quarters.
“There is strong momentum to diversify the way advertisers spend on digital. We continued to see marketers spend disproportionately more with The Trade Desk as they look beyond the few search and social sites that historically captured the most advertising dollars. Our strategy of being the best platform for media buying and not owning or arbitraging media is more valuable today than it ever was,” said Jeff Green, Founder and Chief Executive Officer of The Trade Desk.
Trade Desk revised its third quarter and full year guidance after the strong second quarter. For the third quarter, the Company forecasts revenue of USD 116 Million and an adjusted EBITDA of USD 33 Million. For the full year, the Company forecasts revenue of USD 456 Million and an adjusted EBITDA of USD 140 Million.
“Programmatic is the fastest growing segment of advertising and the Trade Desk is going faster than anyone in programmatic. We continue to see momentum as ad dollars shift to our platform” said Green in the earnings transcript. “We continue to make aggressive, yet prudent investments in our business in our key growth areas, such as mobile, video, connected TV and expanding our global infrastructure.”