The Trade Desk Earnings Await: (TTD) Stock Under Pressure After Difficult Start To Year

The Trade Desk's stock (NASDAQ: TTD) is mildly lower leading into earnings, with a 0.57% dip heading into this afternoon's report, due post close.

Analysts anticipate TTD to deliver a slight uptick in earnings, with EPS projected at $0.41, up modestly from $0.39 a year earlier, signifying a 5% year-over-year improvement. On the revenue front, the company is expected to pull in $686.0 million, reflecting a robust 17.4% increase from $584.6 million in the same quarter of 2024.

The Trade Desk has demonstrated strong financial performance in recent quarters. In Q1 2025, the company reported a 25% year-over-year revenue increase, reaching $616 million. This impressive growth was fueled by the increasing adoption of its Kokai platform, which has reportedly led to substantial improvements in advertising efficiency for its clients, including a 24% reduction in cost per conversion and a 20% decrease in cost per acquisition.

Furthermore, the company achieved a healthy 34% adjusted EBITDA margin, translating to $208 million for the quarter.

A key driver of The Trade Desk’s success has been its international expansion.

For the ninth consecutive quarter, international growth has outpaced that of North America, highlighting the company's ability to penetrate new markets and capitalize on global advertising trends.

Connected TV (CTV) continues to be the largest and fastest-growing advertising channel for the company, reflecting the broader shift in consumer viewing habits and the increasing importance of digital video advertising.

The Trade Desk has solidified its position as a key player in the digital advertising ecosystem through strategic partnerships and a commitment to an open internet. The company's inclusion in Netflix's expanded advertising partnerships, alongside Magnite and Google DV360, underscores its growing influence and the value it brings to advertisers.

CEO Jeff Green's vocal advocacy for an open internet and his criticism of Google's dominance in online advertising have resonated with many in the industry. Green's vision of a more competitive landscape, where advertisers have greater control and transparency, has helped to differentiate The Trade Desk from its larger rivals.

The Trade Desk's stock price has fallen 24.27% since the start of the year, a reversal from the 68%+ in gains seen through 2024. With pressure on TTD leading into the print, can execution match up to expectation, or are the bears set to feast.