Ventura-based advertising technology developer The Trade Desk delivered strong third quarter financial results on Nov. 5, including growth in revenue, net income and earnings per share that exceeded analysts’ expectations.
“Despite the headwinds of a global pandemic, we had healthy growth in the third quarter, far surpassing our own expectations,” founder and CEO Jeff Green said during the company’s earnings call.
The Trade Desk reported revenue of growth of 32% year-over-year, with revenue of $216.1 million in the third quarter of 2020, compared to $164.2 million in the same quarter last year.
In net income, The Trade Desk saw growth of about 112%, earning $41.2 million in the third quarter this year compared to $19.4 million last year.
Earnings per share were $1.27, which is up 69% from the same quarter last year and exceeded Zacks Consensus Estimates by 159%.
The Trade Desk closed at $647.30 on Nov. 5, up 2.35% throughout the day. The earnings report was released after trading closed, and the company’s stock skyrocketed in after-hours trading, going as high as $736.
The Trade Desk attributed the strong quarter to growth in key channels such as advertising spent on connected or streaming TV, which was up 100% year-over-year, while advertising in mobile and audio each delivered increases of 70%.
Customer retention was also key, as the company maintained over 95% of its base during the third quarter, as it has done the past five years.
“We are seeing no deviation from that and I would assert customers are relying on us more and more,” Green said. “We are highly encouraged by our strong performance in the third quarter and I have never been more proud of our team’s performance than in this quarter.”