Trade Desk stock fell 4.88% (As on May 11, 11:30:15 AM UTC-4, Source: Google Finance) though the company posted better-than-expected results for the first quarter of FY 23. Customer retention remained over 95% during the first quarter, as it has for the past nine consecutive years. The Trade Desk is building support for Unified ID 2.0 (UID2), an industry-wide approach to identity that preserves the value of relevant advertising, while putting user control and privacy at the forefront. UID2 is an upgrade and alternative to third-party cookies. In March, on stage at Forward ’23: Always On, NBCUniversal announced it is implementing UID2 on Peacock across all devices and consumer touchpoints, including on CTV, the web, apps and devices. In February, Rave, a leading group video-viewing platform with over 70 million users announced its support and enablement of UID2. In January, Paramount Advertising announced its integration with UID2 to scale identity on its CTV inventory.
TTD in the first quarter of FY 23 has reported the adjusted earnings per share of 23 cents, beating the analysts’ estimates for the adjusted earnings per share of 13 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 21 percent to $382.8 million in the first quarter of FY 23, beating the analysts’ estimates for revenue by 4.92%. The shift from linear to connected TV continues to accelerate and fully decisioned programmatic will feature more prominently than ever at this year’s upfronts. At the same time, more leading marketers are leveraging new innovations, such as shopper data, to better understand the relationship between campaign activity and consumer action.
The Trade Desk sees Q2 2023 revenue of $452.00M versus the analyst consensus of $445.30M and Adjusted EBITDA to be of approximately $160 million.
Additionally, the company has repurchased $293 million of our Class A common stock in the first quarter of 2023. As of March 31, 2023, we had $407 million available and authorized for repurchases.
On the other hand, the Company also announced the promotion of Laura Schenkein to Chief Financial Officer, succeeding Blake Grayson, who will be leaving the company for a senior finance role outside the advertising technology industry after a transition period. Ms. Schenkein will assume her new role effective June 1, 2023.