The Trade Desk (NASDAQ:TTD) is gearing up to unveil its third-quarter 2023 results on November 9. Anticipation is building as the company has high expectations for the quarter.
In terms of revenue, for the third quarter, The Trade Desk anticipates a minimum of $485 million, marking a robust 23% year-over-year growth. The Zacks Consensus Estimate for the company’s top line currently stands at $486.72 million, implying a 23.29% year-over-year growth.
Earnings-wise, the consensus estimate is pegged at 29 cents per share, reflecting an 11.54% increase from the figures reported in the year-ago quarter. It’s noteworthy that The Trade Desk has consistently outperformed the Zacks Consensus Estimate for earnings in the last four quarters, delivering an average earnings surprise of 23.91%.
Several factors contribute to the optimistic outlook for The Trade Desk in the third quarter. Notably, the company’s top-line growth is expected to have received a significant boost from a substantial increase in digital spending. This surge is primarily driven by a shift from linear TV to more premium alternatives like programmatic CTV.
Furthermore, strong customer retention is anticipated to have played a pivotal role in boosting the company’s revenues during the quarter. Impressively, The Trade Desk maintained an exceptional customer retention rate of over 95% during the second quarter, continuing this impressive trend for nine consecutive years.
The company is also witnessing a strong uptick in key initiatives such as Connected TV, retail media, Unified ID 2.0, OpenPath, and the new data marketplace. These initiatives are expected to further contribute to the company’s growth in the third quarter.
The overall improvement in the ad spending environment bodes well for The Trade Desk. The company is likely to have benefited from its expanding presence in international markets across Europe and Asia.
One noteworthy aspect of The Trade Desk’s recent progress is its growing partner base. In the second quarter of 2023, the company extended its support to Warner Bros. Discovery by integrating with UID2. This integration encompasses premium entertainment, sports, news, and lifestyle brands, including Warner Bros. digital platforms such as HBO Max and Discovery+.
Moreover, The Trade Desk recently announced a partnership with Walmart’s advertising arm, Walmart Connect. Walmart Connect initiated testing of UID2 integration to inform decision-making across the open Internet within the Walmart DSP.
Additionally, the company introduced EUID, the European counterpart to UID2, specifically tailored for the European market. EUID is gaining traction across Europe, garnering support from various brands, publishers, and retailers.
As The Trade Desk gears up to disclose its third-quarter earnings, the stage is set for potentially exciting developments in light of these promising factors.
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