Advertising software maker The Trade Desk (NASDAQ:TTD) will be reporting earnings tomorrow after the bell. Here's what investors should know.
The Trade Desk beat analysts' revenue expectations by 2.2% last quarter, reporting revenues of $491.3 million, up 28.3% year on year. It was a good quarter for the company, with a solid beat of analysts' billings estimates and strong sales guidance for the next quarter.
Is The Trade Desk a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting The Trade Desk's revenue to grow 24.5% year on year to $578.1 million, improving from the 23.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.36 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The Trade Desk has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.5% on average.
Looking at The Trade Desk's peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 32.6%, beating analysts' expectations by 7.2%, and DoubleVerify reported revenues up 16.6%, topping estimates by 1.4%. Zeta traded up 11.9% following the results while DoubleVerify was down 2.2%.
Read our full analysis of Zeta's results here and DoubleVerify's results here.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts thanks to mixed inflation data, and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share prices down 4.8% on average over the last month. The Trade Desk is down 17.3% during the same time and is heading into earnings with an average analyst price target of $103.3 (compared to the current share price of $84).
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