The Trade Desk (NASDAQ:TTD) Reports Bullish Q1, Stock Soars

Advertising software maker The Trade Desk (NASDAQ:TTD) announced better-than-expected revenue in Q1 CY2025, with sales up 25.4% year on year to $616 million. Guidance for next quarter’s revenue was better than expected at $682 million at the midpoint, 0.8% above analysts’ estimates. Its non-GAAP profit of $0.33 per share was 33.2% above analysts’ consensus estimates.

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• 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 EBITDA: $207.9 million vs analyst estimates of $147.5 million (33.7% margin, 41% 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

• Free Cash Flow Margin: 37.3%, up from 23.9% in the previous quarter

• Market Capitalization: $27.75 billion

“We delivered strong results in the first quarter, growing revenue 25% year-over-year to $616 million,” said Jeff Green, Co-founder and CEO of The Trade Desk.

Founded by former Microsoft engineers Jeff Green and Dave Pickles, The Trade Desk (NASDAQ:TTD) offers cloud-based software that uses data to help advertisers better plan, place, and target their online ads.

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, The Trade Desk grew its sales at a solid 25.8% compounded annual growth rate. Its growth surpassed the average software company and shows its offerings resonate with customers, a great starting point for our analysis.

This quarter, The Trade Desk reported robust year-on-year revenue growth of 25.4%, and its $616 million of revenue topped Wall Street estimates by 7%. Company management is currently guiding for a 16.7% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 14.7% over the next 12 months, a deceleration versus the last three years. Still, this projection is commendable and implies the market is forecasting success for its products and services.

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