What Happened
Trade Desk (NASDAQ: TTD) released its quarterly earnings report on Wednesday, revealing earnings per share (EPS) of $999.00, significantly surpassing analysts’ expectations of $0.59, as reported by Zacks. The company also reported quarterly sales of $846.79 million, exceeding the Street estimate of $840.46 million and up from $741.01 million in the same period last year.
Why It Matters
The strong earnings performance is notable given the backdrop of macroeconomic uncertainty. Trade Desk’s net margin stood at 15.72%, with a return on equity of 16.00%. CEO Jeff Green highlighted that the company generated $2.9 billion in revenue for the year while maintaining a customer retention rate above 95%. Additionally, the Board of Directors announced a stock repurchase plan allowing for the buyback of $500 million in shares, indicating confidence in the stock’s value.
What’s Next
Looking ahead, Trade Desk anticipates first-quarter revenue to exceed $678 million, although this is below the analyst estimate of $689.48 million. Despite the positive earnings report, TTD stock experienced a decline of 14.67% to $21.47 in extended trading on Wednesday. Investors will be closely monitoring the stock’s performance in light of recent institutional investments, including a 41% stake increase by Bank of New York Mellon and a 325% increase by Principal Financial Group.
