What To Expect From The Trade Desk’s Q4 Earnings

Radek Strnad /
2022/02/15 6:40 am EST
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Advertising software maker The Trade Desk (NASDAQ:TTD) will be reporting results tomorrow morning. Here's what to look for.

Last quarter The Trade Desk reported revenues of $301 million, up 39.3% year on year, beating analyst revenue expectations by 6.04%. It was a decent quarter for the company, with an exceptional revenue growth but an 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 21.9% year on year to $390 million, slowing down from the 48.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 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 6.21%.

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 what we can expect. LiveRamp (NYSE:RAMP) delivered top-line growth of 17.4% year on year, beating analyst estimates by 1.08% and Qualtrics (NASDAQ:XM) reported revenues up 47.9% year on year, exceeding estimates by 6.18%. LiveRamp traded down 6.25% on results, Qualtrics was up 5.97%. Read our full analysis of LiveRamp's results here and Qualtrics's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 3.07% over the last month. The Trade Desk is up 11.2% during the same time, and is heading into the earnings with analyst price target of $95.8, compared to share price of $79.

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.