The Trade Desk Reports Q3 Revenue of $739 Million, Up 18% but Slowing Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Revenue Performance: The Trade Desk reported third-quarter revenue of $739 million, an 18% year-over-year increase, although this reflects a slowdown compared to 19% in Q2 and 25% in Q1, indicating pressure on ad spending due to macroeconomic uncertainty.
- Profitability Highlight: The company achieved a net income of $116 million in Q3, translating to a 16% net income margin, while adjusted EBITDA reached $317 million with a 43% margin, demonstrating strong profitability even amid slowing growth.
- Customer Retention: Management noted that customer retention has exceeded 95% for eleven consecutive years, providing a stable revenue foundation in the competitive advertising technology market.
- Future Outlook: Management guided for at least $840 million in revenue for Q4 2025, representing about 13% growth compared to Q4 2024's $741 million, indicating that despite the slowdown, the company is looking to reaccelerate through connected TV (CTV).
TTD
$38.31+Infinity%1D
Analyst Views on TTD
Wall Street analysts forecast TTD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for TTD is 64.53 USD with a low forecast of 47.00 USD and a high forecast of 90.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
23 Analyst Rating
15 Buy
6 Hold
2 Sell
Moderate Buy
Current: 38.120
Low
47.00
Averages
64.53
High
90.00
Current: 38.120
Low
47.00
Averages
64.53
High
90.00
About TTD
The Trade Desk, Inc. is a global advertising technology company. The Company offers a self-service, cloud-based ad-buying platform that empowers its clients to plan, manage, optimize and measure more expressive data-driven digital advertising campaigns. Its platform allows clients to execute integrated campaigns across ad formats and channels, including connected television (CTV) and other video, display, audio, and native, on a multitude of devices, such as televisions, streaming devices, mobile devices, computers and digital-out-of-home devices. Its platform’s integrations with inventory, publisher and data partners provide ad buyers reach and decisioning capabilities, and its enterprise application programming interfaces (APIs) enable its clients to customize and expand platform functionality. Its platform provides auto-optimization features that allow buyers to automate their campaigns and support them with computer-generated modeling and decision-making.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
