The Trade Desk, Inc. (NASDAQ: TTD) shares jumped more than 25% after the technology Company announced financial results for its third quarter ended September 30, 2020.
“So far in 2020 we’ve seen several years of advertising disruption and innovation compressed into a few months. As a result, advertisers have become more deliberate and data-driven with every advertising dollar. That helped us deliver record quarterly revenue of $216 million and adjusted EBITDA of $77 million.” said Co-Founder and CEO of The Trade Desk, Jeff Green. “This is the result of our long-term strategic investments to build a compelling Open Internet alternative for advertisers. As advertisers come under pressure to prove the ROI of their campaigns, to take advantage of the mass consumer shift to streaming TV, and to consider alternatives to user-generated content, our investments in these areas are paying off. Whether it’s our focus on measurement capabilities, CTV inventory or the future of identity, advertisers can count on us as the industry’s most innovative and complete demand side platform.”
Trade Desk reported that omnichannel solutions remain a strategic focus for the company as the industry continues shifting toward transparency and programmatic buying. Channel highlights from Q3 include Connected TV, which grew over 100% from Q3 2019 to Q3 2020, Mobile Video spend, which grew about 70% from Q3 2019 to Q3 2020 and Audio spend grew about 70% from Q3 2019 to Q3 2020.
As for future outlook, Trade Desk indicated that it has been impacted by the COVID-19 pandemic that has significantly impacted advertiser demand. Like many companies that are ad-funded, the company are facing a period of higher uncertainty in our business outlook.
“Assuming that the economy continues to recover and we do not have any major COVID-19 related setbacks that may cause economic conditions to deteriorate, we estimate Q4 revenue to range between $287 million and $291 million. Under this assumption, we estimate adjusted EBITDA to be at least $115 million in Q4,” the company explained.