TTD Stock – 2020 election ads are driving our business this year
The Trade Desk topped Wall Street’s expectations in its fourth quarter and the digital advertising outfit benefited greatly from the 2020 race for the White House.
“We’re having an amazing start to our 2020 and … we’re just feeling really great about our Q1,” founder and CEO Jeff Green told CNBC’s Jim Cramer in a “Mad Money” interview. “We’re feeling really great about the year, of course, as well and that’s largely driven by political advertising.”
Trade Desk shares were up more than 5% in after-hours trading coming off the company’s earnings release. Revenue came in at $216 million, up 35% from a year ago, and earnings came in at $1.49 per share, a nearly 37% improvement, in the December quarter.
Wall Street analysts, according to FactSet, are forecasting the company to bring in $161.5 million of revenue and 43 cents per share in the current quarter.
The firm relies on data to drive its advertising spots. Green said the company is helping nearly all 10 presidential candidates, along with local campaigns, to get their messages out to voters on the internet.
“Even though it’s low-single digits in terms of percentage of our customers, it is an amazing addition to the year for us and [we’re] really excited to be representing nearly every presidential candidate on both sides of the aisle,” Green explained. “We’re excited to be participating in what we think is a very important process and excited for the, yet, additional tailwind that it represents.”
Former Mayor Michael Bloomberg, one of eight people vying for the Democratic Party’s nomination to take on President Donald Trump in November, spent more than $190 million of his fortune in the fourth quarter alone on advertising. As of this week, the billionaire candidate has spent a sum of $400 million on seemingly ubiquitous ad placements — primarily in TV and digital — on his late-comer attempt to win Super Tuesday states in the primary.
Trade Desk is likely to have received a piece of the Bloomberg campaigns’ ad spending, but Green was tight-lipped when asked.
“We are definitely representing nearly every presidential candidate, so it could be” Trade Desk, he said in response.
As of the close, Trade Desk shares are down more than $65 from where it was on Feb. 19. The stock finished Thursday’s tough trading day at $250.01, down 6% in the session.