Digital advertising platform The Trade Desk (NASDAQ: TTD) will be reporting earnings this Monday after the bell. Here’s what you need to know.
The Trade Desk missed analysts’ revenue expectations last quarter, reporting revenues of $715.1 million, up 3% year on year. It was a disappointing quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and EBITDA guidance for next quarter missing analysts’ expectations significantly.
Is The Trade Desk a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting The Trade Desk’s revenue to decline 11.9% year on year, a reversal from the 17.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. The Trade Desk has missed Wall Street’s revenue estimates multiple 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 Q3 results, giving us a hint as to what we can expect. AppLovin delivered year-on-year revenue growth of 55.5%, beating analysts’ expectations by 5.4%, and DoubleVerify reported revenues up 9%, topping estimates by 1.1%. AppLovin traded up 31% following the results while DoubleVerify’s stock price was unchanged.
Read our full analysis of AppLovin’s results here and DoubleVerify’s results here.
Investors in the sales and marketing software segment have had fairly steady hands going into earnings, with share prices down 1.4% on average over the last month. The Trade Desk is up 6.9% during the same time and is heading into earnings with an average analyst price target of $13.53 (compared to the current share price of $12.92).
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