The Trade Desk expects 17% revenue increase in Q1, but earnings forecast is negative

From Nasdaq: 2025-05-06 11:57:00

The Trade Desk, Inc. (TTD) will report its first-quarter 2025 results on May 8, with a Zacks Consensus Estimate of 25 cents per share, down from 26 cents in the prior year. Total revenues are estimated at $574.3 billion, reflecting a 16.9% decline year-over-year.

TTD predicts revenues of at least $575 million, a 17% increase, citing minor headwinds from 2024 leap year comparisons and lower political ad spend. While TTD has beaten earnings estimates in the past, this quarter’s forecast isn’t as promising with an Earnings ESP of -9.45% and a Zacks Rank #5 (Strong Sell).

Factors impacting TTD’s Q1 earnings include competition from industry giants like Google and Amazon, as well as macroeconomic uncertainty and trade tensions. Despite challenges, TTD’s focus on Connected TV (CTV) and retail media may drive growth, supported by the adoption of UID2 for enhanced ad targeting.

TTD’s stock has dropped 58.1% in the last six months, significantly underperforming the Internet Services industry. Valuation-wise, TTD is trading at a premium compared to the industry average. Investors may want to consider offloading TTD shares due to its negative Earnings ESP and Zacks Rank #5.

Zacks Research Chief highlights TTD as a stock to watch, noting its strategic initiatives for growth and expanding partner base. However, challenges like market competition, regulatory scrutiny on data privacy, and evolving consumer data practices could impact TTD’s performance. Investors may want to monitor TTD’s Q1 results closely.



Read more at Nasdaq: How Should You Play The Trade Desk Stock Going Into Q1 Earnings?