Trade Desk Inc - Class A
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.56%.
Did TTD Beat Earnings? Q1 2025 Results
The Trade Desk delivered a convincing <a href="https://247wallst.com/investing/2025/05/earnings-live-will-ttd-recover-after-rare-miss/">return to form</a> in Q1 2025, posting revenue of $616.02 million — up 25.4% year-over-year and ahead of the $575.28 million consensus by 7.08% — while non-GAAP diluted EPS of $0.33 cleared the $0.2477 estimate by 33.23%. The standout quarter was powered in large part by accelerating adoption of the company's Kokai platform, which CEO Jeff Green credited as a key driver alongside strategic improvements rolled out in Q4 2024, helping marketers shift budgets toward the open internet and away from walled gardens. Customer retention exceeded 95% for the eleventh consecutive year, reinforcing the platform's stickiness even against a volatile macro backdrop. Adjusted EBITDA reached $207.88 million at a 34% margin, a modest expansion from 33% a year earlier. Looking ahead, management guided Q2 2025 revenue to at least $682 million with Adjusted EBITDA of approximately $259 million, signaling that the company sees its current momentum as durable rather than a one-quarter rebound.
- 25% year-over-year revenue growth driven by strategic upgrades implemented in Q4 2024
- Customer retention over 95% for the eleventh consecutive year
- Adjusted EBITDA margin expansion to 34% from 33% year-over-year
- Growing adoption of open internet advertising by leading marketers
“We delivered strong results in the first quarter, growing revenue 25% year-over-year to $616 million. We're encouraged by the early impact of the strategic upgrades at the company we implemented in Q4, which contributed to our outperformance. As we build on this momentum, we're optimistic about our ability to continue to outpace the market and deliver increasing value to marketers who prioritize objective, transparent, and data-driven media buying on the open internet.”
Trade Desk CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, The Trade Desk guided revenue of at least $682 million and Adjusted EBITDA of approximately $259 million. The company did not provide GAAP net income guidance due to the variability of stock-based compensation expense. Management expressed optimism about capturing greater market share as marketers increasingly embrace the open internet for data-driven advertising, with the Kokai platform positioned as a key differentiator against walled gardens.
TTD YoY Financials
Figures from SEC filings and company reports. Not investment advice.