The Trade Desk (TTD) Reports Q1: Everything You Need To Know Ahead Of Earnings

Petr Huřťák /
2023/05/09 4:29 am EDT

Advertising software maker The Trade Desk (NASDAQ:TTD) will be reporting earnings tomorrow after market hours. Here's what to expect.

Last quarter The Trade Desk reported revenues of $490.7 million, up 24% year on year, missing analyst expectations by 0.22%. It was a mixed quarter for the company, with a meaningful improvement in gross margin but a miss of the top line 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 15.5% year on year to $364.3 million, slowing down from the 43.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 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 only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 3.01%.

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 what we can expect. Braze delivered top-line growth of 40.1% year on year, beating analyst estimates by 3.05% and VeriSign reported revenues up 5.04% year on year, missing analyst estimates by 0.8%. Both companies (Braze and Verisign) traded flat on the results. Read our full analysis of Braze's results here and VeriSign's results here.

Tech stocks have been under pressure since the end of last year and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 4.81% over the last month. The Trade Desk is up 5.12% during the same time, and is heading into the earnings with analyst price target of $67.2, compared to share price of $64.67.

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.