Trade Desk (NASDAQ:TTD) Releases Earnings Results, Misses Expectations By $0.24 EPS

Key Points

• Trade Desk reported Q1 EPS of $0.08, missing the consensus by $0.24, while revenue was $688.9 million (+11.8% YoY) and adjusted EBITDA was $206 million (30% margin); the company guided Q2 revenue ≥ $750 million and expects full‑year adjusted EBITDA margin of at least 40%.
• Management cited near‑term headwinds—geopolitical uncertainty, tariffs, category weakness (CPG, home & garden, food & drink) and high U.S. concentration (~82% of revenue)—which contributed to a softer outlook and the stock trading down ~2.2% to $23.49 on heavy volume.
• Positive operational signs include momentum in video/CTV and audio and strong results from the Audience Unlimited test, while strategic initiatives (agentic AI, partnerships) plus insider buying and a $350 million share buyback authorization offer additional shareholder support.

Trade Desk (NASDAQ:TTD - Get Free Report) released its quarterly earnings data on Thursday. The technology company reported $0.08 earnings per share for the quarter, missing the consensus estimate of $0.32 by ($0.24), Zacks reports. Trade Desk had a return on equity of 16.89% and a net margin of 15.31%.The business had revenue of $688.86 million for the quarter, compared to analyst estimates of $678.87 million. During the same quarter last year, the company earned $0.33 EPS. Trade Desk's revenue was up 11.8% compared to the same quarter last year.

Here are the key takeaways from Trade Desk's conference call:

• Q1 revenue of $689 million (+12% YoY) with $206 million adjusted EBITDA (30% margin); company guides Q2 revenue ≥$750 million and expects full‑year adjusted EBITDA margin of at least 40%.
• Product and channel momentum — video/CTV was a low‑50s% share, audio was the fastest‑growing channel, and the new Audience Unlimited test showed materially better economics (lower CPMs and data costs, 75% more efficient CPA and 2.7x conversion rate); Trade Desk also claims retail data coverage of >80% of top U.S. retailers vs Amazon <15%.
• Management flagged near‑term headwinds that drove a softer Q2 outlook — geopolitical uncertainty, tariffs, and category weakness (notably CPG, home & garden, food & drink) plus high U.S. concentration (~82% of revenue) may pressure near‑term growth.
• Strategic positioning emphasizes agentic AI, partnerships (Stagwell, Netflix, Disney, Spotify), and platform initiatives (OpenPath/OpenTTD) while remaining an independent, objective DSP — management views this as a durable competitive advantage for long‑term TAM capture.

Trade Desk Stock Down 2.2%

TTD stock traded down $0.52 during trading on Thursday, reaching $23.49. 41,510,874 shares of the company's stock were exchanged, compared to its average volume of 16,247,390. Trade Desk has a 1-year low of $19.74 and a 1-year high of $91.45. The firm has a market cap of $11.18 billion, a PE ratio of 26.10, a P/E/G ratio of 0.96 and a beta of 1.10. The company's fifty day moving average price is $23.73 and its 200-day moving average price is $32.86.

Key Headlines Impacting Trade Desk

Here are the key news stories impacting Trade Desk this week:

• Positive Sentiment: Revenue roughly matched/beat expectations (helping the topline view despite slowing growth). View press release and slide deck. Press Release
• Positive Sentiment: Significant insider buying by CEO noted in filings — a signal management is buying the stock at current levels. Quiver Quant
• Neutral Sentiment: Analysts are split: several buy/outperform ratings remain, but some firms have downgraded or set lower targets — median 6‑month target around $35, with a range into the low $20s. Globe & Mail
• Neutral Sentiment: Company said it updated Q2 guidance (details were minimal in early releases) — guidance clarity will be a near-term catalyst but the update as released did not reassure markets.
• Negative Sentiment: EPS missed estimates: Q1 EPS $0.28 vs. consensus ~$0.32, falling short and raising concerns about margin pressure. Zacks
• Negative Sentiment: Growth decelerated vs. prior periods and profit came up short of expectations — investors are focused on whether management can reaccelerate demand and stabilize margins. MarketWatch
• Negative Sentiment: Ongoing agency-client uncertainty (reports of at least one large agency advising clients on platform use after a third‑party audit) plus recent leadership/finance changes elevated execution and revenue-risk concerns. This dynamic likely amplified the selloff. Quiver Quant

Insider Activity at Trade Desk

In related news, Director Kathryn E. Falberg sold 102,828 shares of Trade Desk stock in a transaction dated Thursday, March 5th. The shares were sold at an average price of $30.45, for a total transaction of $3,131,112.60. Following the sale, the director directly owned 1,946 shares in the company, valued at $59,255.70. The trade was a 98.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Company insiders own 11.41% of the company's stock.

Hedge Funds Weigh In On Trade Desk

Several large investors have recently bought and sold shares of the stock. Brighton Jones LLC lifted its stake in shares of Trade Desk by 3.8% in the 4th quarter. Brighton Jones LLC now owns 4,586 shares of the technology company's stock worth $539,000 after acquiring an additional 169 shares during the period. Bison Wealth LLC increased its stake in shares of Trade Desk by 24.3% during the fourth quarter. Bison Wealth LLC now owns 2,480 shares of the technology company's stock valued at $291,000 after acquiring an additional 485 shares during the period. Woodline Partners LP raised its holdings in Trade Desk by 75.5% during the first quarter. Woodline Partners LP now owns 5,275 shares of the technology company's stock worth $289,000 after purchasing an additional 2,269 shares in the last quarter. Cerity Partners LLC raised its holdings in Trade Desk by 46.6% during the second quarter. Cerity Partners LLC now owns 59,785 shares of the technology company's stock worth $4,304,000 after purchasing an additional 19,015 shares in the last quarter. Finally, AXA S.A. lifted its position in Trade Desk by 14.7% in the second quarter. AXA S.A. now owns 42,819 shares of the technology company's stock worth $3,083,000 after purchasing an additional 5,487 shares during the period. Institutional investors and hedge funds own 67.77% of the company's stock.

Trade Desk declared that its Board of Directors has initiated a share buyback program on Wednesday, February 25th that allows the company to buyback $350.00 million in shares. This buyback authorization allows the technology company to buy up to 2.9% of its stock through open market purchases. Stock buyback programs are often a sign that the company's board believes its stock is undervalued.

Analysts Set New Price Targets

Several research firms have recently commented on TTD. William Blair lowered Trade Desk from an "outperform" rating to a "market perform" rating in a report on Friday. Arete Research raised Trade Desk from a "sell" rating to a "neutral" rating and set a $25.00 price target on the stock in a report on Monday, March 16th. Rosenblatt Securities restated a "neutral" rating and set a $25.00 price objective (down from $36.00) on shares of Trade Desk in a research report on Wednesday, March 18th. Jefferies Financial Group reaffirmed a "hold" rating on shares of Trade Desk in a research report on Tuesday, March 17th. Finally, Stifel Nicolaus set a $26.00 target price on Trade Desk and gave the company a "hold" rating in a research note on Tuesday, March 17th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, eighteen have given a Hold rating and four have given a Sell rating to the company's stock. According to data from MarketBeat.com, Trade Desk has a consensus rating of "Hold" and an average price target of $41.38.

About Trade Desk

The Trade Desk, Inc NASDAQ: TTD is a technology company that provides a demand-side platform (DSP) for programmatic digital advertising. Its platform enables advertisers, agencies and other buyers to plan, purchase and measure ad inventory across digital channels, including display, video, mobile, audio, native and connected TV. By centralizing real‑time bidding, audience targeting and inventory access, the company aims to help clients optimize media spend and reach audiences at scale across publishers and ad exchanges.

Founded in 2009 by Jeff Green and Dave Pickles, The Trade Desk grew from a focus on programmatic display into a global ad‑tech provider.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.