NASDAQ$TTD

Trade Desk Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

The Trade Desk outperformed the digital advertising market, growing revenue and reporting positive net income.

The Trade Desk reported strong first quarter results, with revenue growing 21% year-over-year to $383 million. The company's performance was driven by the increasing value that marketers place on data-driven media buying on the open internet. The Trade Desk is well positioned to deliver premium value to its clients and gain share.

  • Revenue increased by 21% year-over-year to $383 million.
  • Customer retention remained over 95%.
  • Net income was $9 million, with diluted earnings per share of $0.02.
  • The company repurchased $293 million of Class A common stock.

Headline financials

Total Revenue

$383M

Previous: $315M+21.4%
EPS (adj)

$0.23

Previous: $0.21+9.5%
Capital Expenditures

-$9.16M

Previous: -$8.4M-9.0%
Free Cash Flow

$170K

Previous: -$23M+100.7%
Net Income

$9.33M

Previous: -$14.6M+163.9%
Operating Income

-$23.3M

Previous: -$17.1M-36.7%
Gross Profit

$298M

Previous: $251M+18.5%
Cash & Equivalents

$893M

Previous: $844M+5.7%
Total Assets

$4B

Previous: $3.43B+16.5%
Stock-Based Comp

$113M

Previous: $125M-9.1%

Revenue & EPS history

Trade Desk · Revenue · Quarterly

$383M

Q1 2023+21.4%vs Q1 2022
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Forward guidance

The Trade Desk expects revenue of at least $452 million and Adjusted EBITDA of approximately $160 million for the second quarter of 2023.

Tailwinds

  • Revenue at least $452 million
  • Adjusted EBITDA of approximately $160 million
  • Shift from linear to connected TV continues to accelerate
  • Fully decisioned programmatic will feature more prominently than ever at this year’s upfronts
  • More leading marketers are leveraging new innovations, such as shopper data, to better understand the relationship between campaign activity and consumer action

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

+7.6%

Avg return

Earnings day

+7.0%

Avg return

5 days after

+8.9%

Avg return

30 days after

69%

29 / 42 earnings

Positive

+46.8%

Q1 2018

Best reaction

-33.0%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-17.0%-12.2%-16.9%
Q4 2025+12.0%-0.6%-15.4%
Q3 2025-3.2%-4.6%-12.7%
Q1 2025+18.7%+32.1%+19.3%
Q4 2024-33.0%-34.5%-55.9%
Q3 2024+0.3%+5.1%+11.5%
Q2 2024+16.9%+15.8%+18.1%
Q1 2024-1.1%-2.4%+5.1%
Q4 2023+19.7%+11.1%+3.2%
Q3 2023-18.8%-14.2%-10.4%
Q2 2023-9.6%-11.8%-1.7%
Q1 2023+0.6%-0.2%+16.3%
Q4 2022+26.3%+20.8%+17.2%
Q3 2022+9.5%+10.1%+10.2%
Q2 2022+35.1%+35.5%+17.1%
Q1 2022-3.7%+15.4%+16.7%
Q4 2021-1.4%-3.1%-14.5%
Q3 2021+41.6%+46.4%+42.8%
Q2 2021+4.2%-3.7%-14.0%
Q1 2021-22.2%-21.8%-11.5%
Q4 2020+7.0%-6.3%-13.2%
Q3 2020+29.6%+11.8%+42.9%
Q2 2020-0.6%-10.1%-11.0%
Q1 2020+1.1%-0.5%+13.5%
Q4 2019+7.6%+4.0%-25.2%
Q3 2019+0.6%+15.1%+27.2%
Q2 2019+5.7%+2.9%-9.4%
Q1 2019-17.4%-16.6%+10.3%
Q4 2018+31.7%+30.3%+35.2%
Q3 2018-7.1%-15.0%+1.3%
Q2 2018+39.9%+45.6%+55.4%
Q1 2018+46.8%+55.7%+72.0%
Q4 2017+20.3%+11.5%+7.1%
Q3 2017-17.3%-23.7%-26.6%
Q2 2017+0.9%-5.5%+4.1%
Q1 2016+29.4%+30.3%+28.2%
Q1 2017+29.4%+30.3%+28.2%
Q2 2016+2.2%+10.5%+24.8%
Q4 2016+2.2%+10.5%+24.8%
Q3 2016+10.9%+10.0%+19.7%
Q4 2015+10.9%+10.0%+19.7%
Q3 2015+10.9%+10.0%+19.7%
Q2 2015
Q1 2015

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