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Cantor Analyst Sees 24% Upside In Trade Desk After Another Beat And Raise Quarter

Cantor Analyst Sees 24% Upside In Trade Desk After Another Beat And Raise Quarter

Trade Desk Inc (NASDAQ: TTD), which reported a second-quarter sales beat and raised its sales estimate for the year Thursday, is demonstrating strong performance and mobile growth that’s outrunning expectations, according to Cantor Fitzgerald.

The self-serve advertising platform reported a Q2 adjusted EPS of 52 cents against a 19-cent estimate and sales of $72.8 million versus a $68.02 million estimate after the close Thursday.

The Trade Desk projects third-quarter sales of $76 million against a $74.07-million estimate and raised its sales guidance for the year from $291 million to $303 million against a $294.23 million estimate.

Cantor Fitzgerald reiterated an Overweight on Trade Desk and raised its price target from $60 to $62 in a Thursday note.

International, Mobile Channels Driving Growth

The company has “well-rounded growth across all channels,” said Cantor Fitzgerald analyst Kip Paulson.

Trade Desk’s international business grew at three times the rate of its U.S. market and represents 12 percent of the company’s revenue, Paulson said.


Mobile accounts for one-third of The Trade Desk’s revenue, and the growth “continues to outpace management’s expectations,” Paulson said.

Mobile video was up 171 percent year over year and mobile in-app grew almost 87 percent year over year, according to Cantor Fitzgerald.

While Trade Desk is making “aggressive investment” in product, people and global expansion, its EBITDA number is still growing, Paulson said. The company’s adjusted EBITDA was up 60.5 percent year over year to $25.3 million, a 34.7-percent margin, according to Cantor Fitzgerald. That’s $10.1 million above Street estimates and $10.8 million above Trade Desk’s $14.5 million guidance.

The analyst firm also highlighted Trade Desk’s customer retention rate, which stands above 95 percent.

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Image Credit: "Kathleen Comer, GM, Client Services, The Trade Desk, participates in the"The Trade Desk Classroom Series. Staffing the Agency of the Future"session in the Classroom on Day 2 of Internet Week New York May 19, 2015. INSIDER IMAGES/Gary He" By Gary He [CC BY 2.0 (], via Wikimedia Commons

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