Trade Desk Q1 Revenue Grows 12% but Stock Plummets
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 50 minutes ago
0mins
Should l Buy TTD?
Source: stocktwits
- Revenue Growth vs. Profitability Miss: Trade Desk reported Q1 revenue of $689 million, a 12% year-over-year increase that surpassed analyst expectations of $678.68 million; however, the earnings per share of $0.28 fell short of the $0.32 forecast, indicating weakened profitability and eroding investor confidence.
- Executive Departure Raises Concerns: The announcement of Chief Strategy Officer Samantha Jacobson's departure to OpenAI just before earnings heightened market worries about the company's competitive edge in AI, particularly given her pivotal role in AI partnerships and long-term strategy.
- Future Guidance Falls Short: The company projected at least $750 million in revenue for Q2, which is below analyst expectations of $770.41 million, exacerbating investor fears of slowing growth and resulting in a nearly 15% drop in stock price following the earnings report.
- CEO Remains Optimistic: Despite economic uncertainties, CEO Jeff Green expressed confidence in the company's profitability and future growth, highlighting the shift towards data-driven advertising strategies and emerging channels as key drivers for expanding global advertising opportunities, reinforcing the belief that the company is well-positioned for future success.
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Analyst Views on TTD
Wall Street analysts forecast TTD stock price to rise
28 Analyst Rating
15 Buy
12 Hold
1 Sell
Moderate Buy
Current: 24.010
Low
38.00
Averages
53.33
High
85.00
Current: 24.010
Low
38.00
Averages
53.33
High
85.00
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.
Trade Desk Q1 Earnings Beat Expectations Despite EPS Miss
- Revenue Growth: Trade Desk reported Q1 revenue of $688.86 million, representing an 11.8% year-over-year increase, exceeding market expectations by $10.18 million, indicating sustained growth potential in the advertising technology sector.
- Strong Customer Retention: The company maintained a customer retention rate of over 95% in the first quarter, consistent for over a decade, showcasing its robust capabilities in customer relationship management and service quality, which supports long-term revenue stability.
- Financial Guidance: For Q2 2026, Trade Desk projects revenue of at least $750 million, below the consensus estimate of $770.41 million, reflecting a cautious market outlook on future growth.
- Stock Reaction: Following the earnings report, Trade Desk's stock fell 10.5% in after-hours trading, indicating investor concerns regarding earnings expectations and future guidance, which may impact market confidence in the short term.
See More
Trade Desk Q1 Revenue Grows 12% but Stock Plummets
- Revenue Growth vs. Profitability Miss: Trade Desk reported Q1 revenue of $689 million, a 12% year-over-year increase that surpassed analyst expectations of $678.68 million; however, the earnings per share of $0.28 fell short of the $0.32 forecast, indicating weakened profitability and eroding investor confidence.
- Executive Departure Raises Concerns: The announcement of Chief Strategy Officer Samantha Jacobson's departure to OpenAI just before earnings heightened market worries about the company's competitive edge in AI, particularly given her pivotal role in AI partnerships and long-term strategy.
- Future Guidance Falls Short: The company projected at least $750 million in revenue for Q2, which is below analyst expectations of $770.41 million, exacerbating investor fears of slowing growth and resulting in a nearly 15% drop in stock price following the earnings report.
- CEO Remains Optimistic: Despite economic uncertainties, CEO Jeff Green expressed confidence in the company's profitability and future growth, highlighting the shift towards data-driven advertising strategies and emerging channels as key drivers for expanding global advertising opportunities, reinforcing the belief that the company is well-positioned for future success.
See More
Multiple Companies Report Earnings Beats, Significant Stock Movements
- Akamai Stock Surge: Akamai Technologies shares surged 25% after announcing a $1.8 billion seven-year contract with a leading U.S. frontier model provider, indicating strong demand for its Cloud Infrastructure Services and likely boosting future revenues significantly.
- Gen Digital's Positive Guidance: Gen Digital's stock rose 8% following its current-quarter and full-year revenue guidance that exceeded analysts' expectations, suggesting robust performance in the software market that could drive future stock price increases.
- Trade Desk Stock Plummet: Trade Desk's shares plummeted 14% as its current-quarter revenue guidance fell short of analyst expectations, highlighting intensified competition in the advertising technology sector that may impact the company's future market share.
- Gilead's Adjusted Outlook: Gilead Sciences shares dropped 3% after projecting a full-year adjusted loss of $1.05 to $0.65 per share, reflecting increased research and development and financing costs, which could negatively affect investor confidence.
See More
Trade Desk to Release Q1 Earnings on May 7
- Earnings Release Announcement: Trade Desk is set to release its Q1 2023 earnings on May 7, with analysts projecting earnings of 32 cents per share, indicating a cautious market sentiment regarding the company's profitability.
- Stock Price Movement: Ahead of the earnings report, Trade Desk's stock fell by 2.5% to $24.01 on Wednesday, reflecting investor concerns about the upcoming financial results, which could impact short-term market performance.
- Analyst Ratings Focus: There is a keen interest in changes to analyst ratings for Trade Desk, as any adjustments could influence investor confidence and stock price movements, particularly in the lead-up to the earnings announcement.
- Market Reaction Analysis: The decline in stock price may signify investor uncertainty about the company's future performance, especially in the current economic climate, where Trade Desk needs to demonstrate strong financial results to restore market confidence.
See More
The Trade Desk Q1 Earnings Preview
- Earnings Expectations: The Trade Desk anticipates Q1 earnings of 32 cents per share, reflecting a 3% decline, while revenue is projected at $678.68 million, indicating a 10.2% year-over-year increase, showcasing potential growth despite competitive pressures.
- Increased Competitive Pressure: With the rise of Amazon's demand-side platform, The Trade Desk faces intensifying market competition, leading analysts to adopt a more cautious outlook that could impact future market share.
- Governance Issues: An audit commissioned by Publicis Groupe flagged potential breaches of agreement terms by The Trade Desk, raising client concerns about using its platform and adding to market uncertainty.
- Stock Volatility: Although The Trade Desk has exceeded EPS estimates 88% of the time over the past two years, its stock has fallen approximately 36% this year, reflecting market worries about its growth prospects amid changing macroeconomic and competitive landscapes.
See More
Trade Desk Stock Rises 1.4% in Premarket Following Wedbush Upgrade to Neutral from Underperform
- Trade Desk Shares Performance: Trade Desk shares increased by 1.4% in pre-market trading following a positive earnings report.
- Market Reaction: The rise in shares comes after the company raised its guidance, indicating a shift from underperformance to a more neutral outlook.
See More
Trade Desk Q1 Earnings Beat Expectations Despite EPS Miss
- Revenue Growth: Trade Desk reported Q1 revenue of $688.86 million, representing an 11.8% year-over-year increase, exceeding market expectations by $10.18 million, indicating sustained growth potential in the advertising technology sector.
- Strong Customer Retention: The company maintained a customer retention rate of over 95% in the first quarter, consistent for over a decade, showcasing its robust capabilities in customer relationship management and service quality, which supports long-term revenue stability.
- Financial Guidance: For Q2 2026, Trade Desk projects revenue of at least $750 million, below the consensus estimate of $770.41 million, reflecting a cautious market outlook on future growth.
- Stock Reaction: Following the earnings report, Trade Desk's stock fell 10.5% in after-hours trading, indicating investor concerns regarding earnings expectations and future guidance, which may impact market confidence in the short term.
See More
Trade Desk Q1 Revenue Grows 12% but Stock Plummets
- Revenue Growth vs. Profitability Miss: Trade Desk reported Q1 revenue of $689 million, a 12% year-over-year increase that surpassed analyst expectations of $678.68 million; however, the earnings per share of $0.28 fell short of the $0.32 forecast, indicating weakened profitability and eroding investor confidence.
- Executive Departure Raises Concerns: The announcement of Chief Strategy Officer Samantha Jacobson's departure to OpenAI just before earnings heightened market worries about the company's competitive edge in AI, particularly given her pivotal role in AI partnerships and long-term strategy.
- Future Guidance Falls Short: The company projected at least $750 million in revenue for Q2, which is below analyst expectations of $770.41 million, exacerbating investor fears of slowing growth and resulting in a nearly 15% drop in stock price following the earnings report.
- CEO Remains Optimistic: Despite economic uncertainties, CEO Jeff Green expressed confidence in the company's profitability and future growth, highlighting the shift towards data-driven advertising strategies and emerging channels as key drivers for expanding global advertising opportunities, reinforcing the belief that the company is well-positioned for future success.
See More
Multiple Companies Report Earnings Beats, Significant Stock Movements
- Akamai Stock Surge: Akamai Technologies shares surged 25% after announcing a $1.8 billion seven-year contract with a leading U.S. frontier model provider, indicating strong demand for its Cloud Infrastructure Services and likely boosting future revenues significantly.
- Gen Digital's Positive Guidance: Gen Digital's stock rose 8% following its current-quarter and full-year revenue guidance that exceeded analysts' expectations, suggesting robust performance in the software market that could drive future stock price increases.
- Trade Desk Stock Plummet: Trade Desk's shares plummeted 14% as its current-quarter revenue guidance fell short of analyst expectations, highlighting intensified competition in the advertising technology sector that may impact the company's future market share.
- Gilead's Adjusted Outlook: Gilead Sciences shares dropped 3% after projecting a full-year adjusted loss of $1.05 to $0.65 per share, reflecting increased research and development and financing costs, which could negatively affect investor confidence.
See More
Trade Desk to Release Q1 Earnings on May 7
- Earnings Release Announcement: Trade Desk is set to release its Q1 2023 earnings on May 7, with analysts projecting earnings of 32 cents per share, indicating a cautious market sentiment regarding the company's profitability.
- Stock Price Movement: Ahead of the earnings report, Trade Desk's stock fell by 2.5% to $24.01 on Wednesday, reflecting investor concerns about the upcoming financial results, which could impact short-term market performance.
- Analyst Ratings Focus: There is a keen interest in changes to analyst ratings for Trade Desk, as any adjustments could influence investor confidence and stock price movements, particularly in the lead-up to the earnings announcement.
- Market Reaction Analysis: The decline in stock price may signify investor uncertainty about the company's future performance, especially in the current economic climate, where Trade Desk needs to demonstrate strong financial results to restore market confidence.
See More
The Trade Desk Q1 Earnings Preview
- Earnings Expectations: The Trade Desk anticipates Q1 earnings of 32 cents per share, reflecting a 3% decline, while revenue is projected at $678.68 million, indicating a 10.2% year-over-year increase, showcasing potential growth despite competitive pressures.
- Increased Competitive Pressure: With the rise of Amazon's demand-side platform, The Trade Desk faces intensifying market competition, leading analysts to adopt a more cautious outlook that could impact future market share.
- Governance Issues: An audit commissioned by Publicis Groupe flagged potential breaches of agreement terms by The Trade Desk, raising client concerns about using its platform and adding to market uncertainty.
- Stock Volatility: Although The Trade Desk has exceeded EPS estimates 88% of the time over the past two years, its stock has fallen approximately 36% this year, reflecting market worries about its growth prospects amid changing macroeconomic and competitive landscapes.
See More
Trade Desk Stock Rises 1.4% in Premarket Following Wedbush Upgrade to Neutral from Underperform
- Trade Desk Shares Performance: Trade Desk shares increased by 1.4% in pre-market trading following a positive earnings report.
- Market Reaction: The rise in shares comes after the company raised its guidance, indicating a shift from underperformance to a more neutral outlook.
See More
