The Trade Desk (NASDAQ: TTD) Reports Q4 and Fiscal Year 2022 Results Showing Strong Revenue and Adj. EBITDA Margins; Announces $700 Million Buyback Program

February 15, 2023 at 13:55 PM EST

The Trade Desk, Inc. (NASDAQ: TTD) is engaged as an advertising technology company, which operates a self-service, cloud-based platform that allows ad buys to create, manage and optimize their digital ad campaigns. Shares of the adtech company are rallying 25% through afternoon trading on Wednesday, February 15, 2023. Over the past three months, The Trade Desk has seen average daily volume of 4.04 million shares. However, volume of 20.85 million shares or dollar volume of around $1.3 billion, has already exchanged hands through afternoon trading.

Shares of The Trade Desk are gaining after the company reported Q4 and fiscal 2022 financial results. During the fourth quarter of 2022, the advertising technology company reported total revenue of $491 million or year-over-year growth of 24%. Adjusted EBITDA for Q4 came in at $245 million, giving the company an adjusted EBITDA margin of 50%. Non-GAAP net income was reported at $190 million or $0.38 per diluted share. On a GAAP basis, The Trade Desk reported net income of $71 million or $0.14 per diluted share.

For the fiscal year 2022, The Trade Desk reported total revenue of just under $1.6 billion, which represents 32% y/y growth. Adjusted EBITDA was calculated at $668 million for 2022, giving the company a stable adj. EBITDA margin of 42%, the same as full-year 2021. GAAP net income was $53 million or $0.11 per diluted share. On a non-GAAP basis, full-year 2022 net income was $522 million or $1.04 per diluted share.

The company notes that customer retention continued to hold at 95%, as has been the case for the past nine years. The Trade Desk also continued its collaboration and support for Unified ID 2.0, an industry-wide identity approach that provides value for relevant advertising without the use of third-party cookies. The Galileo functionality was also launched during Q4 2022, which allows advertising to integrate and utilize their first-party data quickly and easily.

In conjunction with the financial results, The Trade Desk announced a $700 million share buyback program for its class A common stock. Management says the buyback program is being implemented to help offset the impact of dilution from employee stock issuances. Repurchases are able to take place in the open market or in private transactions.

“The Trade Desk outpaced nearly all areas of digital advertising in 2022, with 32% revenue growth year over year, and a record $491 million of revenue in the fourth quarter alone. This performance was underscored by significant profitability and cash flow. In an unpredictable macro environment, our growing relationships with agencies and brands is testament to the value of the open internet over the limitations of walled gardens,” said Jeff Green, founder and CEO of The Trade Desk. “More of the world’s leading advertisers are gravitating to fast-growing channels such as Connected TV (CTV) and retail media, which offer premium value at scale. They are leveraging new identity tools, such as UID2, which allow them to make the most of their first-party data in a privacy-safe manner. These trends will accelerate in 2023 and we will continue to invest in our platform to help advertisers drive maximum value from these opportunities.”

Disclosure: No position. Spotlight Growth has no relationships with any of the companies mentioned in this article and did not receive payment in any form for its creation. This is an opinion article and is not meant to be financial advise. We are not broker-dealers or investment professionals. Please conduct your own due diligence. For more information on our disclosures, please visit: https://spotlightgrowth.com/disclosures/

The post The Trade Desk (NASDAQ: TTD) Reports Q4 and Fiscal Year 2022 Results Showing Strong Revenue and Adj. EBITDA Margins; Announces $700 Million Buyback Program appeared first on Spotlight Growth.

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The Trade Desk (NASDAQ: TTD) Reports Q4 and Fiscal Year 2022 Results Showing Strong Revenue and Adj. EBITDA Margins; Announces $700 Million Buyback Program

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