Should I buy The Trade Desk shares after Q4 results?
- The Trade Desk reported solid fourth-quarter results
- Adjusted EBITDA has increased to $191.5 million
- Jefferies upgraded The Trade Desk
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The Trade Desk, Inc. (NASDAQ: TTD) shares continue to trade below their recent highs even though the company reported solid fourth-quarter results this Wednesday.
Jefferies upgraded The Trade Desk
The Trade Desk is a global technology company that markets a software platform used by digital ad buyers to purchase data-driven digital advertising campaigns across various ad formats and devices.
The Trade Desk continues to improve its position in the market, and the fourth-quarter earnings results show that it is moving in the right direction.
Total revenue has increased by 23.7% Y/Y in the fourth fiscal quarter to $395.6 million, while the non- GAAP earnings per share were $0.42 (beats by $0.14).
Adjusted EBITDA has increased to $191.5 million from $152.9 million in the previous quarter, with a 48% margin, and non-GAAP net income rose to $208.1 million from $184.8 million. Jeff Green, CEO of The Trade Desk, added:
We remain committed to creating a better internet that is open, competitive, and fair for all participants. Major advertisers and partners around the world are embracing this vision as the global advertising market races toward a $1 trillion TAM. And as a result, more and more of them are gravitating to our platform.
Total revenue for the 2021 fiscal year grew 43% compared with the previous year, and the company continues to make major progress in areas such as CTV, identity, and retail data.
Despite this, fourth-quarter results disappointed some investors because this was the first time in the last six quarters that revenue growth dipped below 31%.
The company’s management expects revenue to be at least $303 million for the next fiscal quarter, while adjusted EBITDA should be between $90 million and $95 million.
It is important to say that the research company Jefferies announced last month that it has a positive view for the shares of The Trade Desk.
Jefferies increased its price target to $105, which implies more than 30% upside potential, and reported that it sees The Trade Desk as a top pick among large-cap Internet-exposed companies.
The Trade Desk shares have weakened more than 15% since the beginning of the 2022 year, and the current price could be a good entry-level for traders.
If the price jumps above $90, the next target could be around $100, or even above. On the other side, if the price falls below $70 support, it would be a “sell” signal, and we have the open way to $60.
The Trade Desk reported solid fourth-quarter results this Wednesday, and CEO Jeff Green said that the outlook for the upcoming quarters remains positive. Jefferies has a positive view of the shares of The Trade Desk, and the research company increased its price target to $105, which implies more than 30% upside potential compared with the current share price.