Advertising software maker The Trade Desk (NASDAQ:TTD) will be reporting results tomorrow after market hours. Here's what to look for.
Last quarter The Trade Desk reported revenues of $464.3 million, up 23.2% year on year, beating analyst revenue expectations by 2%. It was a solid quarter for the company, with a significant improvement in its gross margin.
Is The Trade Desk buy or sell heading into the earnings? Read our full analysis here.
This quarter analysts are expecting The Trade Desk's revenue to grow 23.4% year on year to $487.2 million, slowing down from the 31.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.
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 2.9%.
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 what we can expect. Zeta delivered top-line growth of 24.1% year on year, beating analyst estimates by 5.7% and Sprout Social reported revenues up 31% year on year, exceeding estimates by 1.6%. Zeta traded flat on the results, Sprout Social was up 16.9%.
Tech stocks have had a rocky start since 2022 and while some of the sales and marketing software stocks have fared somewhat better, they have not been spared, with share price declining 3% over the last month. The Trade Desk is down 8.4% during the same time, and is heading into the earnings with analyst price target of $86.6, compared to share price of $77.9.
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.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
The author has no position in any of the stocks mentioned.