Trade Desk (NASDAQ:TTD) Posts Quarterly Earnings Results, Beats Estimates By $0.29 EPS

Trade Desk (NASDAQ:TTD) posted its quarterly earnings data on Monday. The technology company reported $0.33 earnings per share for the quarter, beating analysts’ consensus estimates of $0.04 by $0.29, FiscalAI reports. The company had revenue of $735.97 million during the quarter, compared to analysts’ expectations of $650.93 million. Trade Desk had a net margin of 13.61% and a return on equity of 16.09%.

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 Trading Up 15.5%

NASDAQ:TTD traded up $2.00 during mid-day trading on Monday, hitting $14.93. The stock had a trading volume of 94,365,762 shares, compared to its average volume of 20,209,564. The company has a 50 day simple moving average of $13.06 and a 200-day simple moving average of $19.62. The stock has a market capitalization of $7.02 billion, a price-to-earnings ratio of 17.77, a P/E/G ratio of 1.40 and a beta of 0.98. Trade Desk has a 52 week low of $11.62 and a 52 week high of $45.50.

More Trade Desk News

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

• Positive Sentiment: Q3 results topped expectations. The company reported $736 million in revenue and $0.33 in earnings per share, ahead of analyst estimates. The Trade Desk Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Q4 revenue guidance was well above consensus. The Trade Desk forecast $755 million, versus analyst expectations of about $692 million, signaling management sees stronger near-term revenue than the market had anticipated.
• Positive Sentiment: Leadership and capital-return developments added support. Co-founder and former CTO Dave Pickles’ return has raised hopes for improved execution, while the company also expanded its share repurchase program. The Trade Desk Stock is Suddenly on Fire. Here’s Why.
• Neutral Sentiment: Reports noted that CEO Jeffrey Green received options covering 7 million shares. The grant may align incentives with shareholders, but its potential dilution and significance depend on the award terms and eventual exercise. Trade Desk Handed CEO Jeffrey Green Options on 7 Million Shares
• Negative Sentiment: Year-over-year performance was softer. Q3 revenue was down about 0.5% from a year earlier, and EPS fell from $0.45 to $0.33. Investors also remain mindful of slowing growth, competitive pressure, and the company’s previous shortfall against its own revenue forecast—risks behind TTD’s steep longer-term decline.

Wall Street Analyst Weigh In

Several research analysts recently commented on TTD shares. Zacks Research upgraded Trade Desk from a “strong sell” rating to a “hold” rating in a research note on Friday, October 9th. HSBC lowered shares of Trade Desk from a “hold” rating to a “reduce” rating and set a $10.00 target price on the stock. in a research note on Monday, August 10th. Weiss Ratings reaffirmed a “sell (d)” rating on shares of Trade Desk in a research report on Friday, September 11th. Scotiabank set a $12.00 target price on Trade Desk and gave the stock a “sector perform” rating in a research report on Friday, August 7th. Finally, Needham & Company LLC dropped their price objective on shares of Trade Desk from $25.00 to $19.00 and set a “buy” rating on the stock in a research note on Friday, August 7th. Four analysts have rated the stock with a Buy rating, twenty-six have given a Hold rating and nine have issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Reduce” and an average target price of $18.16.

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.

Founded in 2009 by Jeff Green and Dave Pickles, The Trade Desk serves clients in markets around the world.