Advertising software maker The Trade Desk (NASDAQ: TTD) will be reporting results tomorrow after market close. Here’s what you need to know.
The Trade Desk missed analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $741 million, up 22.3% year on year. It was a disappointing quarter for the company, with EBITDA guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ billings estimates.
Is The Trade Desk a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting The Trade Desk’s revenue to grow 17.2% year on year to $575.6 million, slowing from the 28.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.25 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The Trade Desk has missed Wall Street’s revenue estimates three times over the last two years.
Looking at The Trade Desk’s peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 35.6%, beating analysts’ expectations by 4.1%, and Freshworks reported revenues up 18.9%, topping estimates by 2.1%. Zeta’s stock price was unchanged after the results, while Freshworks was up 2.9%.
Read our full analysis of Zeta’s results here and Freshworks’s results here.
There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 17% on average over the last month. The Trade Desk is up 24.7% during the same time and is heading into earnings with an average analyst price target of $85.64 (compared to the current share price of $56.47).
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