Trade Desk Inc (NASDAQ:TTD) stock rose 6.15% (As on Nov 9, 11:01:58 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 21. During the quarter, the company benefited from continued growth in the digital advertising environment from both agencies and brands. First, video, which excludes Connected TV accounted for nearly 40% of the business, posted the highest ratio ever. CTV spend grew more rapidly in EMEA than any region in the world. Second, in Q3, the international growth once again outpaced the domestic growth, a trend that the company expects to continue over the long term. International expansion also continued at a strong pace. Third, the Walmart DSC recently launched, which is, of course, built on top of the Tribe platform. It is early days, but the company is starting to see test budgets from some of the largest brands in the world flow through the platform. In Q3, the company generated 123 million in adjusted EBITDA or about 41% of revenue. During the quarter, the EBITDA continued to benefit from temporarily lower-than-expected operating expenses, partly driven by the virtual environment. Net cash provided by operating activities was 130 million and free cash flow was 103 million in Q3. The company’s balance sheet had 799 million in cash, cash equivalents, and short-term investments at the end of the quarter. The company have no debt on the balance sheet.

TTD in the third quarter of FY 21 has reported the adjusted earnings per share of 18 cents, beating the analysts’ estimates for the adjusted earnings per share of 16 cents. The company had reported the adjusted revenue growth of 39 percent to $301.1 million in the third quarter of FY 21, beating the analysts’ estimates for revenue of $283.6 million. Excluding political spend related to the U.S. elections in Q3 of last year, the growth was about 47% from a year ago. Excluding U.S. political election spend, which represented a high single-digit percent of spend that the company benefited from in Q4 of 2020. The estimated growth rate in Q4 this year would be about 33% on a year-over-year basis.

For the fourth quarter ending in December, The Trade Desk expects revenue to be in the range of $388 million, which will represent growth of 21% on a year-over-year basis. The company expects EBITDA to be approximately 175 million in Q4.