The Trade Desk (TTD) Reports Earnings Tomorrow. What To Expect

Adam Hejl /
2023/02/14 5:04 am EST

Advertising software maker The Trade Desk (NASDAQ:TTD) will be reporting results tomorrow before market open. Here's what to look for.

Last quarter The Trade Desk reported revenues of $394.8 million, up 31.1% year on year, beating analyst revenue expectations by 2.13%. It was a mixed quarter for the company, with strong topline growth but underwhelming revenue guidance for the next quarter.

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 24.3% year on year to $491.8 million, in line with the 23.7% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.

The Trade Desk Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing four downward revisions over the last thirty days. 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 4.21%.

Looking at The Trade Desk's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. LiveRamp delivered top-line growth of 12.8% year on year, beating analyst estimates by 0.55% and AppLovin reported revenue decline of 11.5% year on year, exceeding estimates by 1.71%. LiveRamp traded up 4.99% on the results, and AppLovin was up 29.7%. Read our full analysis of LiveRamp's results here and AppLovin's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 12.3% over the last month. The Trade Desk is up 4.08% during the same time, and is heading into the earnings with analyst price target of $59.5, compared to share price of $48.99.

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.