Advertising Software Stocks Q3 Results: Benchmarking The Trade Desk (NASDAQ:TTD)

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Advertising Software Stocks Q3 Results: Benchmarking The Trade Desk (NASDAQ:TTD)

Let’s dig into the relative performance of The Trade Desk (NASDAQ:TTD) and its peers as we unravel the now-completed Q3 advertising software earnings season.

The digital advertising market is large, growing, and becoming more diverse, both in terms of audiences and media. As a result, there is a growing need for software that enables advertisers to use data to automate and optimize ad placements.

The 6 advertising software stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.6% while next quarter’s revenue guidance was 0.9% above.

In light of this news, share prices of the companies have held steady as they are up 2.3% on average since the latest earnings results.

Weakest Q3: The Trade Desk (NASDAQ:TTD)

Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ:TTD) offers cloud-based software that uses data to help advertisers better plan, place, and target their online ads.

The Trade Desk reported revenues of $628 million, up 27.3% year on year. This print exceeded analysts’ expectations by 1.2%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ EBITDA estimates but a slight of analysts’ billings estimates.

“The Trade Desk delivered strong performance in the third quarter, with revenue of $628 million, accelerating growth to 27%. This performance underlines the value that advertisers are placing on precision and transparency as they work with us to maximize the impact of their campaigns,” said Jeff Green, Co-founder and CEO of The Trade Desk.

The Trade Desk Total Revenue
The Trade Desk Total Revenue

Unsurprisingly, the stock is down 5.9% since reporting and currently trades at $124.70.

Is now the time to buy The Trade Desk? Access our full analysis of the earnings results here, it’s free.

Best Q3: Zeta (NYSE:ZETA)

Co-founded by former Apple CEO John Scully, Zeta Global (NYSE:ZETA) provides software and data analytics tools that help companies market their products to billions of customers.

Zeta reported revenues of $268.3 million, up 42% year on year, outperforming analysts’ expectations by 6.3%. The business had a stunning quarter with a solid beat of analysts’ billings estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.

Zeta Total Revenue
Zeta Total Revenue

Zeta achieved the fastest revenue growth and highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 50% since reporting. It currently trades at $18.39.

Is now the time to buy Zeta? Access our full analysis of the earnings results here, it’s free.

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