The Trade Desk 2025 Q1 Earnings Beats Expectations as Net Income Surges 60%

The Trade Desk (TTD) reported its fiscal 2025 Q1 earnings on May 08th, 2025. The company exceeded revenue expectations, reporting $616 million compared to analyst estimates of $575.6 million, marking a 25.4% year-on-year growth. Adjusted EPS also beat, coming in at $0.33, 33.2% above consensus estimates. Looking ahead, guidance for Q2 revenue is set at $682 million, slightly above analysts’ expectations, while EBITDA guidance at $259 million also exceeds projections. The results reflect The Trade Desk's strong performance and strategic positioning in the market.

Revenue
The total revenue of The Trade Desk increased by 25.4% to $616.02 million in 2025 Q1, up from $491.25 million in 2024 Q1.

Earnings/Net Income
The Trade Desk's EPS rose 66.7% to $0.10 in 2025 Q1 from $0.06 in 2024 Q1, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $50.68 million in 2025 Q1, marking 60.1% growth from $31.66 million in 2024 Q1. Remarkably, in 2025 Q1, the company set a new record high for fiscal Q1 net income, the highest in 11 years. The EPS growth indicates positive earnings momentum.

Price Action
The stock price of The Trade Desk has climbed 3.84% during the latest trading day, has jumped 12.89% during the most recent full trading week, and has surged 29.26% month-to-date.

Post Earnings Price Action Review
Over the past five years, buying The Trade Desk shares following a quarter with increased revenue and holding them for 30 days has proven to be a successful strategy, delivering an impressive overall return of 400.88%. This performance significantly exceeds the benchmark return of 92.56%, showcasing a substantial margin of 308.32%. Although the strategy incurred a maximum drawdown of -26.69%, the Sharpe ratio of 1.18 indicates moderate returns with some risk. Nevertheless, the 38.20% compound annual growth rate and significant excess return emphasize the strategy's effectiveness in leveraging revenue growth. The approach highlights the potential for capturing gains from The Trade Desk’s consistent revenue increases.

CEO Commentary
"We delivered strong results in the first quarter, growing revenue 25% year-over-year to $616 million," said Jeff Green, Co-founder and CEO of The Trade Desk. He expressed optimism about the early impact of strategic upgrades implemented in Q4, which contributed to their outperformance. Green emphasized that leading marketers are increasingly seeking to leverage the open internet to drive differentiation and growth, positioning The Trade Desk as an essential partner. He highlighted that Kokai enhances their clients' capabilities, enabling them to capitalize on the open internet's full potential despite macroeconomic volatility.

Guidance
For the second quarter of 2025, The Trade Desk expects revenue to be at least $682 million and adjusted EBITDA to be approximately $259 million. The company has not provided guidance for GAAP net income or a reconciliation of adjusted EBITDA expectations.

Additional News
Recent developments at The Trade Desk include the appointment of Vivek Kundra as Chief Operating Officer. Kundra, formerly with Salesforce, brings extensive operational expertise and a history of driving significant revenue growth. His role will oversee global operations and enhance operational excellence as the company scales. Additionally, The Trade Desk continues to support Unified ID 2.0, aiming to establish a privacy-focused identity solution for the advertising industry. Furthermore, The Trade Desk repurchased $386 million of its Class A common stock during Q1, signaling confidence in its market valuation and reinforcing its commitment to returning value to shareholders.