The internet advertising model has changed significantly over the last ten year. Trade Desk is revolutionizing the model again.
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TTD - The Trade Desk - Company Profile
The Trade Desk is a technology company that empowers buyers of advertising. Through its self-service, cloud-based platform, ad buyers can create, manage, and optimize more expressive data-driven digital advertising campaigns across ad formats, including display, video, audio, native and, social, on a multitude of devices, such as computers, mobile devices, and connected TV. Integrations with major data, inventory, and publisher partners ensure maximum reach and decisioning capabilities, and enterprise APIs enable custom development on top of the platform. Headquartered in Ventura, CA, The Trade Desk has offices across the United States, Europe, and Asia. Company description from Trade Desk.
In May the company reported adjusted earnings of 18 cents on revenue of $53.4 million. They did not give earnings guidance but their revenue guidance was $43 million. They guided for EBITDA of -$2 to +$2 million and posted $6.3 million.
Since going public last September they have beaten guidance on all three quarterly reports. Year over year revenue growth has risen 84%, 70% and now 76% for those three reports. Customer retention has been over 95% for 13 consecutive quarters.
The company guided for full year revenue of $291 million, up from $270 million in the prior guidance. The adjusted EBITDA goal was raised from $72 million to $78 million.
Earnings August 10th.
Shares have been in a steady uptrend since mid-April. The $14 earnings spike only took a couple days to consolidate and shares are moving up again.
There are no August options so we have to use July and exit well before earnings.
Buy July $60 call, currently $2.35, initial stop loss $50.50.
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