There are a lot of things an executive has to worry about, but Jeff Green probably has one of the best jobs in town.
“I'm much more concerned that the wave of opportunity is too big and that we're not prepared to handle all the opportunities that come our way than that the wave doesn't exist or is too small,” said Green, CEO and co-founder of The Trade Desk. (TTD) he said during the company's recent press conference. earnings call.
Related: Analyst revises Trade Desk stock target price ahead of earnings
Green's enthusiasm was no doubt related to the company's second-quarter results, which beat Wall Street expectations.
“Our growth rate significantly outpaced the rest of the digital marketing industry, as it has every quarter for the past several years,” he told analysts.
The Trade Desk, a programmatic marketing company, allows you to buy media inventory across multiple channels including display, video, audio and connected TV, most commonly used for streaming video.
Green noted that the total addressable market for global digital advertising has the potential to reach $1 trillion and added that the Trade Desk is well positioned to capture more than its fair share of that $1 trillion.
Trade Desk CEO: “We bring the best value to the market”
“I am convinced that our success has been built on consistent revenue growth of over 20% year-over-year for the past several years,” he told analysts. “By comparison, our ad-funded peers have gone through periods of much lower growth and even stagnation in some cases.”
“That means we're consistently gaining market share quarter after quarter and year after year,” Green added. “And I firmly believe that's because we continue to bring the best innovation and the best value to the market.”
Related: Analyst resets Trade Desk stock target price after Netflix deal
He also talked about Kokai, the ai-powered media buying platform the company launched last year.
“Kokai enables our customers to use data about their most loyal customers and then use that data as a seed to generate and harvest the next generation of loyal customers,” he said. “Kokai helps them reach those new audiences across the thousands of destinations that make up the best of the open Internet.”
“And it leverages ai to help them understand the roughly 15 million advertising opportunities we see every second and the hundreds of variables associated with each one,” Green added.
Green spoke about Alphabet (GOOGL) Current legal headaches during the question and answer period.
Judge Amit Mehta of the U.S. District Court for the District of Columbia ruled on Aug. 5 that Alphabet, Inc.'s Google illegally monopolized the search engine market through exclusive agreements with Apple. (APL-American Lead Association) and others.
Related: Analysts weigh impact of Google antitrust ruling on Apple stock price
Google also faces an antitrust trial next month in the Eastern District of Virginia for anticompetitive conduct in advertising technology, whichtech“> Bloomberg Law “It could be a seismic event that potentially determines whether Google remains a single entity or breaks up into separate companies.”
“They are a weaker competitor than in years past,” Green said. “And as I've often said, we've been winning in an unfair market. Imagine what we could do if we were competing in a fair market.”
“I think as a result of that, I think we'll win no matter what the outcome of this case is, but it'll still be fun to watch,” he said.
The Trade Desk posted second-quarter earnings of 39 cents per share, up from 28 cents a year earlier and beating the consensus estimate of 36 cents per share.
Analysts cite a “strong quarter”
Revenue totaled $584.6 million, up from $464 million a year ago, and topped Wall Street's estimate of $578.1 million in sales.
Looking ahead, the company forecast third-quarter revenue of $618 million, above estimates of $605.5 million.
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Chris Versace from TheStreet Pro I liked those numbers and raised his price target on The Trade Desk shares to $120 from $110.
“The Trade Desk continues to benefit from the overall shift in the mix of digital and advertising as advertisers look to reach consumer eyeballs,” he wrote in his Aug. 9 column.
“It is also benefiting from the growing use of advertising business models on digital video and audio streaming platforms such as those found on Netflix. (NFLX) Disney (DIS) Warner Bros. Discovery (WBD) amazon (amazon.com) Spotify (PLACE) and others,” Versace added.
Several analysts adjusted their price targets following The Trade Desk's earnings report.
RBC Capital raised its price target on the company to $120 from $110 and maintained an outperform rating on the stock.
The Trade Desk had a solid quarter in what has been a mixed macroeconomic environment, delivering revenue growth and solid profitability, the firm said.
The company's improved third-quarter guidance also stands out from its peers as The Trade Desk continues to benefit from several cyclical and secular drivers, including market share gains from walled gardens, but most notably within CTV, the firm added.
Truist raised the firm's Trade Desk price target to $108 from $105 and maintained a buy rating on the stock, citing the company's earnings that beat expectations and “stronger” third-quarter guidance.
Trade Desk execution remains exceptional amid a volatile digital advertising environment, with strong momentum and market share gains driven by the connected TV business given its rapid adoption in the US and internationally, the firm said.
KeyBanc analyst Justin Patterson raised his Trade Desk price target on the company to $115 from $105 and maintained an overweight rating on the stock.
The Trade Desk is clearly gaining share in the advertising market, and the benefits of Kokai's innovation and partnership with Netflix are yet to come, the analyst said.
Patterson said he believes year-over-year revenue growth of more than 20% is possible in 2025 and 2026, with the option for faster growth around regulatory decisions.
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