The Trade Desk (TTD) Q3 Earnings: What To Expect

Petr Huřťák /
2022/11/08 2:14 am EST

Advertising software maker The Trade Desk (NASDAQ:TTD) will be announcing earnings results tomorrow before the bell. Here's what to expect.

Last quarter The Trade Desk reported revenues of $376.9 million, up 34.6% year on year, beating analyst revenue expectations by 3.22%. It was a strong quarter for the company, with a meaningful improvement in gross margin and solid top line growth.

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 28.3% year on year to $386.3 million, slowing down from the 39.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 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 6.34%.

Looking at The Trade Desk's peers in the sales and marketing software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Zeta delivered top-line growth of 32.2% year on year, beating analyst estimates by 7.94% and BigCommerce reported revenues up 22.1% year on year, exceeding estimates by 3.97%. Zeta traded up 5.28% on the results, BigCommerce was down 9.05%. Read our full analysis of Zeta's results here and BigCommerce's results here.

Tech stocks have had a rocky start in 2022 and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share price declining 6.47% over the last month. The Trade Desk is down 19.9% during the same time, and is heading into the earnings with analyst price target of $78.80, compared to share price of $43.90.

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.