The Trade Desk’s first quarter was marked by strong revenue growth and a positive market reaction, as the company delivered results above Wall Street expectations. Management credited this performance to increased adoption of its Kokai platform, which leverages artificial intelligence to optimize digital ad campaigns, and to ongoing expansion in Connected TV (CTV) advertising. CEO Jeff Green emphasized that recent product and organizational upgrades positioned The Trade Desk to capture market share, noting, “The upgrades we made at the end of 2024 are beginning to deliver results.” The company also highlighted broad-based growth across geographies and verticals, with particular strength in technology and healthy living sectors.
Is now the time to buy TTD? Find out in our full research report (it’s free).
The Trade Desk (TTD) Q1 CY2025 Highlights:
- Revenue: $616 million vs analyst estimates of $575.6 million (25.4% year-on-year growth, 7% beat)
- Adjusted EPS: $0.33 vs analyst estimates of $0.25 (33.2% beat)
- Adjusted Operating Income: $182.7 million vs analyst estimates of $2.20 million (29.7% margin, significant beat)
- Revenue Guidance for Q2 CY2025 is $682 million at the midpoint, roughly in line with what analysts were expecting
- EBITDA guidance for Q2 CY2025 is $259 million at the midpoint, above analyst estimates of $254.1 million
- Operating Margin: 8.8%, up from 5.8% in the same quarter last year
- Billings: $3.09 billion at quarter end, up 26.9% year on year
- Market Capitalization: $36.17 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions The Trade Desk’s Q1 Earnings Call
- Shyam Patil (Susquehanna) asked how recent product and go-to-market changes contributed to results. CEO Jeff Green highlighted Kokai adoption and improved collaboration between teams as key drivers of performance.
- Vasily Karasyov (Autonomous Research) questioned the downstream effects of Google’s antitrust verdict on the industry. Green responded that a fairer, less monopolistic market should benefit The Trade Desk and increase competition.
- Justin Patterson (KeyBanc) inquired about incorporating macroeconomic uncertainty into guidance. Green emphasized that the company’s objectivity and focus on helping clients navigate volatility position it well, even amid uncertainty.
- Matt Swanson (RBC) asked about Amazon’s DSP and whether it changes the competitive landscape. Green stated that Amazon’s DSP is primarily for Prime Video, and The Trade Desk’s objectivity remains a competitive advantage.
- Jessica Reif Ehrlich (Bank of America) requested updates on OpenPath and its impact. Green shared that publishers are seeing significant gains and that further supply chain efficiency is a strategic focus.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace and impact of full Kokai platform adoption, (2) continued expansion and monetization in CTV and retail media channels, and (3) the effects of regulatory changes on competitive dynamics in digital advertising. Progress on product rollouts and international growth will also be important indicators to watch.
The Trade Desk currently trades at $73.65, up from $59.99 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free).
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