Shares of The Trade Desk (NASDAQ: TTD ) are down almost 5% in premarket trading Wednesday after the company’s Q2 forecast missed estimates.
TTD reported Q1 adjusted EPS of 21c, beating the consensus estimates of 15c. Revenue came in at $315 million, up 43% YoY and above the analyst expectations of $304.2 million.
For Q2, the company expects adjusted EBITDA of roughly $121 million, short of the expected $127.1 million. Revenue is expected to be about $364 million, missing the estimates of $365.1 million.
“With this innovation focus, along with strong growth across all channels, led by CTV, we are reinforcing our position as the default demand-side platform for the open internet,” the company said in a press release.
Raymond (NS: RYMD ) James analyst Andrew Marok reiterated a Market Perform rating as TTD is “fairly valued” at current levels.
“The 2H22 setup is encouraging for the company, with political spend shaping up to be a solid contributor to both top line and EBITDA, though macro worries (which contributed to some weakness in Europe around the start of the Russia/Ukraine conflict) are weighing on the space more broadly. In all, 1Q was a solid if not spectacular quarter,” Marok said in a client note.
KeyBanc analyst Justin Patterson is more positive than Marok on TTD stock after earnings. He sees risk-reward as “more compelling”.
“We see several positive trends playing out: 1) CTV becoming a larger % of the business, with Europe inflecting (>100% y/y growth); 2) OpenPath driving broad publisher and UID2 adoption; and 3) retail media and political remaining 2H catalysts. While bears may be skeptical of 2Q guidance, we believe share gains support 30% y/y growth,” Patterson wrote in a note.
By Senad Karaahmetovic
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.