Trade Desk posts upbeat earnings in tough ad climate, but its stock moves lower

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Advertising-technology company Trade Desk Inc. sailed past quarterly earnings expectations Wednesday, but its shares were moving lower in the extended session. Trade Desk TTD, -5.12% logged second-quarter net income of $33 million, or 7 cents a share, whereas it posted a net loss of $19 million, or 4 cents a share, in the year-prior quarter. The company recorded adjusted earnings per share of 28 cents, compared with 20 cents in the year-earlier period. Analysts tracked by FactSet were expecting 26 cents. Revenue increased to $464 million from $377 million, whereas analysts were projecting $455 million. Don’t miss: Trade Desk nabs Nasdaq-100 index inclusion The second quarter “marked another quarter of outstanding execution and share gains for the Trade Desk,” Chief Executive Jeff Green said in a release. “With advances in areas such as [connected TV], retail and identity, we are helping the world’s largest brands buy media on the open internet with more precision and transparency than ever.” Still, Trade Desk shares were off about 6% in Wednesday’s after-hours trading. “While results in the quarter were solidly above guidance, based on our conversations, they fell short of buy-side expectations given the stock’s recent momentum,” RBC Capital Markets analyst Matthew Swanson said in a note to clients. For the third quarter, Trade Desk expects at least $485 million in revenue, while analysts were anticipating $481 million. The company also models $185 million in adjusted earnings before interest, taxes, depreciation and amortization, whereas analysts had been looking for $183 million. Trade Desk results come as large advertising agencies have sent cautious signals this earnings season. Streaming company Roku Inc. ROKU, -5.66% , meanwhile, blew past revenue expectations for its own second quarter but signaled a challenging spending landscape for media and entertainment advertisers. See also: Ad agency WPP cuts sales outlook over caution from U.S. technology companies Read: Tech stocks look strong, but here’s a sign the sector is actually under a lot of stress