Trade Desk Inc (NASDAQ:TTD) stock rose 2.63% (As on May 9, 11:27:41 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the first quarter of FY 24. Adjusted net income for the quarter was $131 million. Net cash provided by operating activities was $185 million, and free cash flow was $176 million in Q1. DSOs exiting Q1 were 86 days, down 2 days from a year ago CPOs were 70 days, down 2 days from a year ago. We exited Q1 with a strong cash and liquidity position. Cash, cash equivalents, and short-term investments ended the quarter at $1.4 billion. The company have no debt on the balance sheet.

TTD in the first quarter of FY 24 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 28 percent to $491 million in the first quarter of FY 24, beating the analysts’ estimates for revenue of $479.66 million. All of the progress in areas such as CTV, Retail Media, Kokai, and UID2 helped deliver another quarter of consistently strong growth in profitability to start 2024. Strength in CTV continued as the channel led the growth from a scale channel perspective once again. From a scale channel perspective in Q1, video, which includes CTV, represented a mid-40% share of the business and continue to grow as a percent of our mix. Mobile represented a mid-30% share spend during the quarter. Display represented a low double-digit percent share of the business, and audio represented around 5%. Geographically, North America represented about 88% of spend, and international represented about 12% of spend for the first quarter. TTD continues to execute the growth playbook internationally led by CTV and retail media. Q1 operating expenses, excluding stock-based compensation, were $352 million, up 20% year over year.

Additionally, in Q1, the company repurchased 1.5 million shares of Class A common stock for an aggregate amount of $125 million.

Looking ahead, The Trade Desk forecasts second-quarter revenue to reach at least $575 million, which is above the analyst consensus of $567 million. The company also expects adjusted EBITDA to be around $223 million. While the company did not provide specific GAAP Net Income guidance, the positive outlook on adjusted EBITDA suggests continued operational efficiency and profitability.