Trade Desk Inc (NASDAQ:TTD) stock rose 20.23% (As on November 10, 11:05:29 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. Customer retention remained over 95% during the third quarter. Third-quarter adjusted EBITDA was $163 million, representing a margin of 41%. The trailing 12-month free cash flow of nearly 500 million is up 53% from a year ago. From a channel perspective, CTV, by a wide margin, led th growth again during the quarter. Exiting Q3, video, which includes CTV, represented a low 40s percentage share of the business and continues to grow rapidly as a percentage of the mix. Mobile represented a high 30s percentage share of spend during the quarter as growth was, again, solid across both in-app and mobile video. Display represented a low teens percent of our business, and audio represented around 5%. Geographically, North America represented about 90% of spend, and international represented about 10% of spend in Q3. The automotive vertical is seeing a bit of a resurgence as a result of winning new business with large automotive manufacturers and the easing of supply chain issues the industry has seen over the better part of the last two and a half years. Hobbies and interest and education were both below the average. Adjusted net income was $129 million. Net cash provided by operating activities was 137 million for Q3 and free cash flow was 112 million. DSOs exit in the quarter were 92 days, up five days from a year ago. DPOs were 74 days, up one day from a year ago. Cash, cash equivalents and short-term investments ended the quarter at $1.3 billion. TTD have no debt on the balance sheet

TTD in the third quarter of FY 22 has reported the adjusted earnings per share of 26 cents, beating the analysts’ estimates for the adjusted earnings per share of 22 cents. The company had reported the adjusted revenue growth of 31 percent to $395.77 million in the third quarter of FY 22, beating the analysts’ estimates for revenue of $385.98 million.

The Trade Desk Inc. expects Q4 2022 revenue of $490 million, versus the consensus of $509.1 million. For the fourth quarter, the company expects Adjusted EBITDA to be of approximately $229 million. In Q4, the company anticipates U.S. political midterm election spend to about double compared with the prior quarter.