TTD will charge its normal 20% take rate on this new revenue stream. It should be noted, though, that Walmart doesn't pay TTD a revenue share, but rather, "TTD makes money from Walmart deal by attracting shopper marketing ad budget (TTD has ZERO of these today) from CGP advertisers that want to move products on shelves at Walmart." What's more, Martin highlights the fact that its deal with Walmart adds shopper marketing total addressable market of $100 billion to TTD's revenue in 2022, with the data integration still on track for completion in the fourth quarter of 2021. CTV consortiums like Open AP are making their targeting IDs comparable with Unified ID 2.0 as are some CTV owners directly, such as FUBO," Martin said. that advertisers can reach using CTV ad units is larger than total linear TV homes… CTV revenues grew faster than 101% total revenue growth year-over-year. "TTD believes that the 79 million households in the U.S. On top of this, Video revenue of $106 million made up 38% of the total Q2 revenue. Finally, TTD believes Unified ID has reached 'critical mass,' (our estimate is 150-200 million consumers) implying every company must accept Unified ID targeting." According to the analyst, this solution is "less about replacing Cookies and more about creating a targeting and measurement competitive advantage for the Open Internet versus Walled Gardens."Įxpounding on this, Martin stated, " TTD is trying to roll out Unified ID 2.0 into CTV targeting, and all other digital advantage channels, and then to convince advantage buyers that unduplicated reach and data granularity is much better in the Open Internet than from Walled Gardens such as Amazon, Google/ YouTube, Facebook, Roku, etc. What exactly are these value upside drivers? First and foremost, Martin points to TTD' s Unified ID 2.0 solution. Additionally, Martin left the $100 price target as is, which implies 21% upside potential. In accordance with her optimistic stance, the five-star analyst reiterated a Buy rating on the media-buying platform provider. The Trade Deskįollowing The Trade Desk's second-quarter earnings call, Needham's Laura Martin tells investors that there are "several upside value drivers we've underestimated, until now." Following the noisy outlook, we expect investors to home in on the commentary around revenue mix shift, additional monetization/take rate opportunities, details surrounding the Tock acquisition and integration and other potential long-term growth accelerators," he commented.Ĭurrently, Wong is tracking a 68% success rate and 27.1% average return per rating. "We remain positive on SQSP's long-term opportunity to enable digital commerce… We expect a more thoughtful growth roadmap at the company's inaugural Analyst Day in November. Long-term, though, Wong is standing in the bull camp. Investors we caught up with were understanding of the volatile demand environment, but felt the lack of specificity around which business segments and KPIs magnified the confusion," Wong explained. Management emphasized a prudent approach to outlook due to the uncertain macro and health climate. However, we expect investors to scrutinize the Q3 revenue outlook guide ($193-198 million, 19-22%), which projects for a modest sequential decline at the mid-point and falls ~$2 million below consensus estimates ($197.5 million). "We believe the increase would have been just 'good enough' in a vacuum. That being said, Wong believes the "flattish Q3 trajectory likely to disappoint investors." For the full year, the company actually bumped up its revenue outlook by $6 million at the midpoint from a range of $764 million to $776 million to a range of $772 million to $780 million. "Management also highlighted better cash retention this year, which should stave off concerns that pandemic subscription cohorts could see elevated churn as economies normalize," the analyst added. It should also be noted that most of the increase in take rate came from Tock's contribution, which Squarespace acquired earlier this year. Additionally, Presence and Commerce revenue surpassed Wong's estimates. Both results beat the Street's $189 million and $200 million calls. Although he trimmed the price target from $70 to $60, this still leaves room for a 40% gain over the next year.ĭigging deeper into the print, Squarespace posted revenue and billings of $196 million (a 31% year-over-year increase) and $206 million (a 24% year-over-year gain), respectively. In line with his optimistic approach, Wong kept a Buy rating on the website building and hosting company. However, the analyst's bullish thesis remains very much intact. Personal Loans for 670 Credit Score or Lowerĭespite Squarespace's solid second-quarter performance, Guggenheim analyst Ken Wong is anticipating some concern from investors. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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