Atlantic Power Corporation T.AT

RBC Extract (Alphabet)

[retiredcf]

Key points:

What the bulls liked. 1) In the face of elevated macro fears coming in, the company delivered search upside highlighting how mission-critical it is to advertisers. All other segments were modestly below sell-side but close enough given the lowered the bar coming in. Most impressively to us, even after adding $32B of ad revs y/y in 1H21, the company added nearly 2x 1H19 levels at $15.8B ytd vs. 1H19 at $8.4B. 2) We think the outsized dollar capture continues to reflect GOOGL's best-in-class 1P data & likely ongoing IDFA impact which differentiates from others in the space. 3) The forward expense commentary, while lacking details, seemed more benign than investors expectations. 4) With minimal forward outlook commentary, expectations continue to rely on sell-side estimates which remain reasonable for 2H22.