Trade Desk (NASDAQ:TTD) Issues Earnings Results

Trade Desk (NASDAQ:TTD) posted its earnings results on Monday. The technology company reported $0.33 earnings per share for the quarter, topping analysts’ consensus estimates of $0.04 by $0.29, FiscalAI reports. The firm had revenue of $735.97 million for the quarter, compared to analysts’ expectations of $650.93 million. Trade Desk had a net margin of 11.03% and a return on equity of 14.64%. The company’s revenue was down .5% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.45 earnings per share.

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

• Third-quarter revenue was $736 million, down 0.5% year over year but meaningfully above the company’s August outlook. A strategic-partner benefit added about 3 percentage points to revenue and is not expected to recur, though management said results excluding it still exceeded expectations.
• The fourth-quarter outlook calls for revenue of at least $755 million, but management does not expect the typical seasonal uplift from Q3 to Q4. Political spending is expected to be higher in Q4 than Q3 but is cyclical, with historical Q1 declines after election-year Q4s.
• Joint business plans were up more than 30% year over year through Q3, and clients using them continue to grow meaningfully faster than those under traditional agreements. The company also reported more than 100 additional plans in its pipeline.
• The company highlighted early product traction: Zuma reduced median time for several campaign setup tasks, while an upgraded Koa model improved CPA by a median 21% in tests; Audience Unlimited campaigns have also shown lower CPA and CPM. These are early results, and management said further development is needed.
• After cutting its workforce by about 15% and recording $44 million in restructuring charges, Trade Desk expects more than $100 million in gross savings in 2027 and meaningfully slower expense growth. Management said some savings will be reinvested, and announced total future share-repurchase authorization of $1 billion.

Trade Desk Stock Performance

Shares of NASDAQ TTD opened at $15.42 on Wednesday. Trade Desk has a 52-week low of $11.62 and a 52-week high of $45.50. The firm has a 50 day moving average price of $13.13 and a two-hundred day moving average price of $19.41. The stock has a market cap of $7.25 billion, a P/E ratio of 22.35, a price-to-earnings-growth ratio of 1.61 and a beta of 0.98.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on TTD. Royal Bank Of Canada raised their price objective on Trade Desk from $15.00 to $18.00 and gave the company a “sector perform” rating in a report on Tuesday. UBS Group reaffirmed a “buy” rating and issued a $19.00 target price (up from $15.00) on shares of Trade Desk in a report on Tuesday. Truist Financial set a $17.00 target price on Trade Desk and gave the stock a “hold” rating in a report on Tuesday. BNP Paribas Exane downgraded Trade Desk from a “neutral” rating to an “underperform” rating and set a $10.00 target price for the company. in a research report on Monday, August 10th. Finally, Moffett Nathanson set a $6.00 price target on Trade Desk in a research note on Friday, August 7th. Four research analysts have rated the stock with a Buy rating, twenty-six have issued a Hold rating and nine have given a Sell rating to the company. According to data from MarketBeat.com, Trade Desk has an average rating of “Reduce” and an average price target of $18.66.

More Trade Desk News

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

• Positive Sentiment: Q3 revenue was about $736 million, ahead of estimates, and adjusted EPS of $0.33 also topped expectations. Management forecast Q4 revenue of $755 million, above the roughly $692 million analyst consensus. Trade Desk Q3 Earnings & Revenues Beat Estimates, Down Y/Y
• Positive Sentiment: The company plans to cut about 15% of its workforce, targeting more than $100 million in gross savings in 2027, and expanded its share-repurchase authorization by $731 million. These steps may support efficiency and shareholder returns. Trade Desk: 3 Key Takeaways for Long-Term Investors
• Positive Sentiment: Unusually high call-option buying suggests some traders are positioning for further gains, though options activity is not a guarantee of future performance. Trade Desk Stock Sees Heavy Call Option Buying
• Neutral Sentiment: DA Davidson initiated coverage with a Neutral rating, reflecting a cautious stance despite the earnings beat. Trade Desk Stock Rated Neutral in New Coverage at DA Davidson
• Negative Sentiment: Underlying results remain pressured: revenue slipped 0.5% year over year and quarterly profit fell sharply. Analysts also cited competitive headwinds, while sluggish growth and execution remain concerns. Trade Desk Faces Competitive Headwinds Despite Political Ad Boost
• Negative Sentiment: Analyst views are mixed-to-cautious: Citi maintained a Sell rating despite raising its target to $12, below the cited share price. The Trade Desk: Rating Downgrade

About Trade Desk

The Trade Desk, Inc. provides a technology platform that helps advertisers and advertising agencies plan, buy, and measure digital advertising. Its self-service platform uses automated, data-driven tools to help clients purchase advertising inventory across channels such as connected TV, mobile, audio, and display. The company also offers tools for campaign management, audience targeting, measurement, and access to data and advertising inventory. Its platform is designed to help clients manage campaigns across multiple media channels and publishers.