The Trade Desk (TTD) To Report Earnings Tomorrow: Here Is What To Expect

Kayode Omotosho /
2022/08/08 4:17 am EDT

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

Last quarter The Trade Desk reported revenues of $315.3 million, up 43.4% year on year, beating analyst revenue expectations by 3.63%. It was a mixed quarter for the company, with an exceptional revenue growth but a decline in gross margin.

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 30.4% year on year to $365.1 million, slowing down from the 100% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 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 6.46%.

Looking at The Trade Desk's peers in the sales and marketing software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. LiveRamp delivered top-line growth of 19.4% year on year, beating analyst estimates by 2.35% and DoubleVerify reported revenues up 43.4% year on year, exceeding estimates by 7.67%. LiveRamp traded down 3.78% on the results, and DoubleVerify was up 8.62%. Read our full analysis of LiveRamp's results here and DoubleVerify's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 8.2% over the last month. The Trade Desk is up 21.5% during the same time, and is heading into the earnings with analyst price target of $70.8, compared to share price of $52.9.

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.

The author has no position in any of the stocks mentioned.