The Trade Desk (TTD) Q1 Earnings: What To Expect

Radek Strnad /
2022/05/09 7:48 am EDT

Advertising software maker The Trade Desk (NASDAQ:TTD) will be reporting results tomorrow after market hours. Here's what investors should know.

Last quarter The Trade Desk reported revenues of $395.5 million, up 23.6% year on year, beating analyst revenue expectations by 1.52%. It was a strong quarter for the company, with a very optimistic guidance for the next quarter and a decent beat of analyst estimates.

Is The Trade Desk buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting The Trade Desk's revenue to grow 38.4% year on year to $304.2 million, in line with the 36.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.14 per share.

The Trade Desk Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 6.24%.

Looking at The Trade Desk's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Sprout Social delivered top-line growth of 40.6% year on year, beating analyst estimates by 2.08% and HubSpot reported revenues up 40.5% year on year, exceeding estimates by 3.27%. Sprout Social traded up 3.7% on the results, HubSpot was down 5.4%. Read our full analysis of Sprout Social's results here and HubSpot's results here.

Tech stocks have had a rocky start in 2022 and software stocks have been swept alongside with it, with share price down on average 18.1% over the last month. The Trade Desk is down 27.2% during the same time, and is heading into the earnings with analyst price target of $96.6, compared to share price of $48.9.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.