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Jun 30, 2020
Trade Desk Q2 2020 Earnings Report
Revenue decreased due to the impact of COVID-19, but ad spend improved as the quarter progressed.
Key Takeaways
The Trade Desk reported a decrease in revenue for Q2 2020 due to the COVID-19 pandemic, but saw improvement in ad spend as the quarter progressed, with June ending strongly with year-over-year growth.
The advertising industry experienced a pause early in the second quarter due to COVID-19 uncertainty, but ad spend improved as the quarter progressed.
June ended strongly with ad spend growth turning positive on a year-over-year basis.
Advertisers value the agility and flexibility that The Trade Desk's platform provides, along with the ability to measure the ROI of every advertising dollar.
Connected TV, Mobile Video and Audio spend grew 40%, 15% and 20% respectively year over year.
Forward Guidance
Assuming that the economy continues to recover and there are no major COVID-19 related setbacks, the company estimates revenue growth in Q3 to increase 8 to 10 percent on a year-over-year basis and adjusted EBITDA to be at least $30 million.
Positive Outlook
- Revenue range between $177 million and $181 million
- Adjusted EBITDA of at least $30 million
- Economy continues to recover
- No major COVID-19 related setbacks
- Revenue growth in Q3 to increase 8 to 10 percent on a year-over-year basis
Challenges Ahead
- Business impacted by the COVID-19 pandemic
- Facing a period of higher uncertainty in business outlook
- Business performance could be impacted by issues beyond control
- Changing economic conditions
Historical Earnings Impact
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Avg. Return Before/After Earnings
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