What caused TTD's Q2 2024 earnings surprise?

The Trade Desk (TTD) reported its Q2 2024 earnings, with a reported EPS of $0.19, missing analysts’ consensus estimates of $0.24 by ($0.05). However, TTD’s revenue for the quarter was $628.02 million, surpassing the consensus estimate of $582.61 million. This revenue outperformance can be attributed to several key factors:

1. **Growth in Connected TV (CTV) Advertisements**: TTD's CTV business continues to experience robust growth, which has been a significant driver of its revenue. The company highlighted the expansion of partnerships with major content providers, such as Disney and NBCUniversal, which has enhanced its market position and contributed to its revenue growth.
2. **Increased Adoption of UID 2.0**: TTD's focus on UID 2.0, a privacy-focused alternative to third-party cookies, has positioned it well to capitalize on the evolving advertising industry's privacy concerns. The company has seen notable adoptions of UID 2.0 by Times Internet in India and DISH Media in the U.S., which is likely contributing to its revenue growth.
3. **Strategic Partnerships and Market Share Gains**: TTD's cloud-based platform and strategic partnerships with premium publishers have enabled it to capture a larger market share and generate more revenue. The company's unique non-competitive stance in content or supply has allowed it to build lasting relationships with premium publishers, which has translated into increased revenue.
4. **Advertising Shift from Closed Markets**: The ad industry's slow movement away from closed advertising markets, such as Google and Facebook, has created an opportunity for TTD to capitalize on. As advertisers look for alternative platforms, TTD's technology and market position are well-suited to capture this shift in demand.

In conclusion, TTD's Q2 2024 earnings surprise can be attributed to its strategic growth initiatives in CTV, UID 2.0, and market partnerships, which have collectively driven revenue outperformance.

|code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|TTD|TTD.O|The Trade Desk|2024 Q1|199.99999999999994|0.06|185|
|TTD|TTD.O|The Trade Desk|2024 Q2|142.85714285714286|0.17|185|
|TTD|TTD.O|The Trade Desk|2024 Q3|137.5|0.19|185|
|TTD|TTD.O|The Trade Desk|2024 Q4|89.4736842105263|0.36|185|

|code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code|
|---|---|---|---|---|---|---|
|TTD|TTD.O|The Trade Desk|2024 Q1|28.330498977280744|4.91253E8|185|
|TTD|TTD.O|The Trade Desk|2024 Q2|25.911677659212412|5.8455E8|185|
|TTD|TTD.O|The Trade Desk|2024 Q3|27.317917715796348|6.28016E8|185|
|TTD|TTD.O|The Trade Desk|2024 Q4|22.320183163667036|7.41012E8|185|