Trade Desk Inc. (NASDAQ: TTD) reported its first quarter financial results and smashed analysts’ estimates. Shares surged by 40.98 percent midday on Friday.
For the first quarter, Trade Desk reported revenue of $85.7 million, increasing 60.6 percent year over year and topping analysts’ estimates of $73.23 million. The company reported an EPS of 34 cents, beating analysts’ estimates of 10 cents.
Founder and Chief Executive Officer Jeff Green said the strong overall growth was attributable to new stream of new brands and agencies joining its platform as well as increasing spending from existing customers.
Trade Desk’’s segments reported strong results, driving revenue for the quarter. The company’s Omnichannel segment remains its main focus, as the industry continues to shift toward transparency and programmatic buying.
Within the Omnichannel, mobile grew 95 percent year over year, while increasing gross spending by 42 percent. Mobile video grew by 160 percent, while mobile in-app grew by 110 percent.
Trade Desk’s ConnectedTV spending grew by over 2,000 percent year over year. Green said the segment was the company’s fastest growing segment. Audio increased by 650 percent year over year.
“In 2018, we are off to a great start. The biggest brands in the world continue to shift their advertising spending to programmatic through our platform.” said Green, “At the same time, we are continuing to make large investments in areas critical to our future. Our focus is on gaining share and revenue growth as this will ultimately maximize profitability over the long-term.”
For the second quarter, Trade Desk forecasts revenue of $103 million and an adjusted EBITDA of $30 million. For the full year, the company forecasts revenue of at least $433 million and an adjusted EBITDA of $133 million or 30.5 percent of revenue.
“We continue to invest in technology infrastructure, product development, and international expansion. These areas of investment are critical to gaining additional market share. We expect the investments we are making now will help drive our next wave of growth in the coming years.” said Green.
Trade Desk shares are now up 62.2 percent this year.