The Trade Desk jumps 16% as analysts praise 'exceptional' execution
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The Trade Desk (NASDAQ:TTD) shares jumped more than 16% on Wednesday after the real-time programmatic advertising company reported better-than-expected quarterly results, with analysts heaping praise on the company's "exceptional" execution.
Truist analyst Youssef Squali, who has a buy rating and a $100 price target on The Trade Desk (TTD) shares, said the stellar figures, along with its strong outlook, came despite the broader economic environment, "implying market share gains."
"Strength in [connected TV] and record new client relationships drove this performance, which is likely sustainable in [second-half 2022] given 100% Solimar adoption, continued momentum in CTV, in shopper [marketing] and in international, with the additional kicker of political spend around the midterms," Squali wrote in a note to clients.
For the second-quarter, The Trade Desk (TTD) said revenues grew 35% year-over-year to $377M, but operating expenses rose 72% to $375.2M, including a 177% increase in stock-based compensation. 
Looking to the third-quarter, The Trade Desk (TTD) expects sales to be $385M, ahead of the $382.3M analysts were expecting. It also expects EBITDA to be about $140M.
Squali added that results from The Trade Desk (TTD) show the long-term thesis that advertisers are "more aggressively turning to data-driven, non-walled garden inventory consumption is playing out," with the company set to benefit, especially from connected TV.
Susquehanna analyst Shyam Patil, who has a positive rating and a $95 price target on The Trade Desk (TTD), noted it was a "standout quarter" for the company, especially in light of the fact that many of its peers reported "challenging results" and lowered their outlooks. 
Patil said "this is only the beginning" for The Trade Desk's (TTD) multi-year secular growth story and its key drivers are "gaining momentum," with "significant upside ahead."
Raymond James analyst Andrew Marok said the results were largely driven by momentum in connected TV and the company is not seeing the same headwinds from the spot market that others, such as Roku (ROKU) have cited. 
"The results given the backdrop are another point in the favor of the 'big gets bigger' thesis as it relates to the open internet, and we expect these trends to continue," Marok wrote in a note to clients.
Last month, The Trade Desk (TTD) Chief Data Officer Michelle Hulst left her role at the company.