The Trade Desk shares soar 19% after impressive FQ4 report; Jefferies raises PT By

The 2021 Forex platform rankingsTrade Desk (NASDAQ:) shot up 19% in premarket trading Friday following the company’s notably stronger-than-expected FQ4 revenue and upbeat guidance.

For the FQ4 2023, the company reported earnings per share (EPS) at $0.41, matching the analysts' predictions. Revenue came in at $606 million, up 23% year-over-year, and surpassing the consensus estimate of $581.96 million.

Adjusted EBITDA margin for the quarter stood at 47%, down from 50% in the year-ago period.

Looking ahead, the marketing automation technology developer projects its first-quarter 2024 revenue to be around $478 million, significantly above the analysts' projection of $420.5 million.

The company also anticipates its adjusted EBITDA to be approximately $130 million.

“Once again The Trade Desk outpaced nearly all areas of digital advertising in 2023, with $1.95 billion of revenue representing 23% growth year over year and a record $9.6 billion of spend on our platform,” said Jeff Green, founder and CEO of The Trade Desk.

“At the same time, we continue to generate significant profitability and cash flow, which allows us to remain at the bleeding edge of our industry, with innovations such as Kokai. Our results are testament to the growing value that advertisers are placing on the open internet versus the limitations of walled gardens,” he added.

Jefferies analysts saw TTD's report as "impressive across the board." The broker raised revenue estimates for the full fiscal 2024 and hiked the price target on the stock from $70 to $90.

"Based on better than expected results, we are raising our FY24 rev est by 2% and now model 25% growth (vs. 23% in FY23)," analysts said in a note.

"We are also raising our FY24 EBITDA est. by 10% and now model a 41% margin (vs. 40% in FY23). In our view, the debate will now shift to TTD's ability to deliver 25%+ rev growth in FY24, which we now believe is possible in a bull case scenario."

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