Skip to main content

TTD STOCK WRITE UP


TTD (THE TRADE DESK)

  • P/E: 54.58
  • GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.11
  • SECTOR: COMMERCIAL SERVICES
  • ASSETS-LIABILITIES: 1.44
  • DIVIDEND: none

The Trade Desk, or TTD, is an online advertising company. TTD also hosts an online advertising marketplace. The industry for this company is rapidly expanding, and it currently has the highest percentage of market share by a large margin.
In the most recent quarter, TTD increased revenue 70% year-over-year. Operating expenses also grew across the board, as the company nearly doubled its spending on sales, marketing, technology and development (the company does not track R&D), general/administrative costs, and “platform operations,” bringing the gross margin down slightly. Prior to the implementation of GAAP, TTD posted a $.05 gain in EPS, and $.11 afterward. The company reduced its debt, and doubled its assets from the last comparable quarter. Most of the increase in assets is located in the company's enormous cash pile.
Jeff Green, who founded the company in 2009, also serves as its CEO. Previously, he founded AdECN, which the company boasts as the world's first online advertising exchange. The company specializes in marketing on digitally broadcast TV shows and other videos, digital audio such as Spotify, social media and other digital platform advertising, and hosting a marketplace where advertisers can bid on advertising space in real-time based on metrics which the company also provides. Similartech rates TTD as the largest provider of online advertising. Although the company already has the bulk of the market share in its burgeoning space, its revenue has been growing exponentially due to the expansion of the online advertising space. As online media becomes more popular, so do the advertising services catering to these markets.
Despite its cash pile, the company recently completed a second offering to raise funds in March 2017. For the upcoming quarter, TTD has given a guidance of $43 million revenue, slightly below Wall Street's expectation of $43.42 million. Wall Street is expecting $.01 EPS, an improvement over the loss in the comparable Q1 '16, but still down from Q1 '15. On its press release, the company announces its goal as aggressive investing rather than extracting profits, and an analysis of revenue growth reveals that revenue on a quarterly basis has doubled from the Q1 '15 quarter.
TTD has committed itself to aggressive investment within a burgeoning industry, focusing on revenue rather than profits. Its stock trades at a high price-to-earnings multiple because of the high expectations for revenue growth. In the past, the company has shown rapid revenue growth. With the company reporting on 5/11/17, Wall Street will be looking for the company to deliver on its promise of revenue growth to propel the stock further upward.





Labels:

Comments

Post a Comment

Popular posts from this blog

PXD STOCK WRITE UP

 PXD (PIONEER NATURAL RESOURCES) P/E: N/A GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.67 SECTOR: ENERGY MINERALS ASSETS-LIABILITIES: 1.58 DIVIDEND: .04% Pioneer Natural Resources has recently made the jaw-dropping switch from negative EPS to positive with its last quarter. Situated in the largest oil-producing region in the US, the company is utilizing its good fortune to produce profits. The company has a good balance sheet, a wealth of resources, and a business model which has afforded it growth. This last quarter does not mark the first occasion on which Pioneer has posted a profit. In 2014, and 2012, Pioneer posted a positive EPS for the full year. While the 2016 oil and gas revenues have grown from 2015, the 2014 and 2012 levels were higher. The company's revenue from oil and gas is largely based on market prices. In order to mitigate the market volatility, Pioneer has made efforts to reduce their cost of production, according to their earnin...
1 comment
Read more

AAPL STOCK WRITE UP

AAPL (APPLE) P/E: 17.1 GAAP DILUTED Y-O-Y EPS GROWTH LAST QUARTER: $.2 SECTOR: ELECTRONIC TECHNOLOGY ASSETS-LIABILITIES: 1.67 DIVIDEND: .57% Apple is a technology company famous for their cell phones, tablets, and music store. The company has a solid balance sheet, and a history of earnings growth. The company reported 5/2/2017. Both revenues and gross margins increased, as well as the expenditure on R&D. Therefore, the company posted quality EPS growth in the past quarter. The revenues and EPS beat wall street expectations, and revenue missed estimize's consensus expectation. Cash flows, and accounts receivable, however, decreased in the last quarter. Inventory, which some consider to be a red flag for technology stocks, also increased. Tim Cook has been employed by Apple since 1998, and held the title of CEO since 2011. He is also on the board of directors with Nike. According to IDC, Apple's market share in the cell phone bus...
Post a Comment
Read more

CLS STOCK WRITE UP

CLS (CELESTICA) P/E: 15.1 GAAP DILUTED EPS Y-O-Y GROWTH LAST QUARTER: $.14 SECTOR: ELECTRONIC TECHNOLOGY ASSETS-LIABILITIES: 1.78 DIVIDEND: none Celestica, a spinoff from IBM, manufactures electronics and provides supply chain services for a variety of businesses. The company has successfully improved upon its operating margins and revenue during its last fiscal year. Reporting April 20 th before market open, the company will try to beat Wall street expectations of $.28 and its own guidance of $.24-$.3. Celestica provides services for the communications, consumer, server, and storage industries, as well as working in diversified companies. This wide array of services gives Celestica the opportunity to expand on revenue when one of its segments is lagging. Rather than developing new products to boost revenue, Celestica must rely on increasing customer satisfaction by managing supply chains well for its clients. In order to showcase their services,...
Post a Comment
Read more