We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
For the first quarter, the company expects revenues of at least $363 million, indicating growth of 15% year over year.
The Zacks Consensus Estimate for the top line is currently pegged at $364.85 million, suggesting a 15.71% increase from the year-ago quarter’s reported figure.
The consensus mark for earnings is estimated to be 13 cents per share, calling for a 38.1% decline from the figure reported in the year-ago quarter.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, delivering an earnings surprise of 9.38% on average.
Let’s see how things have shaped up for this announcement:
Factors to Consider
The Trade Desk’s top-line growth in the first quarter is expected to have been backed by a significant growth in digital spending, primarily driven by a shift from liner TV to more premium alternatives like CTV.
The company is expected to have benefited from the growing adoption of its Unified ID 2.0, CTV and shopper marketing. Companies such as AWS, Snowflake, Salesforce and Adobe are activating UID2 on their platform. UID2 allows advertisers to match their customer data, with accuracy, across the open internet more effectively.
Higher spending and continuous innovation in the product pipeline has been a catalyst for The Trade Desk. The momentum is expected to have driven the top-line growth.
During the to-be-reported quarter, the company introduced Galileo that helps advertisers easily onboard and activate their first-party data. This is expected to have increased its adoption among the advertisers, driving the top line.
Strong customer retention is expected to have pushed up the company’s revenues during the quarter. The Trade Desk’s customer-retention rate has remained at more than 95% in the recent period.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
The Trade Desk has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Image: Bigstock
The Trade Desk (TTD) to Report Q1 Earnings: What's in Store?
The Trade Desk (TTD - Free Report) is set to release its first-quarter 2023 results on May 10.
For the first quarter, the company expects revenues of at least $363 million, indicating growth of 15% year over year.
The Zacks Consensus Estimate for the top line is currently pegged at $364.85 million, suggesting a 15.71% increase from the year-ago quarter’s reported figure.
The consensus mark for earnings is estimated to be 13 cents per share, calling for a 38.1% decline from the figure reported in the year-ago quarter.
The Trade Desk Price and EPS Surprise
The Trade Desk price-eps-surprise | The Trade Desk Quote
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, delivering an earnings surprise of 9.38% on average.
Let’s see how things have shaped up for this announcement:
Factors to Consider
The Trade Desk’s top-line growth in the first quarter is expected to have been backed by a significant growth in digital spending, primarily driven by a shift from liner TV to more premium alternatives like CTV.
The company is expected to have benefited from the growing adoption of its Unified ID 2.0, CTV and shopper marketing. Companies such as AWS, Snowflake, Salesforce and Adobe are activating UID2 on their platform. UID2 allows advertisers to match their customer data, with accuracy, across the open internet more effectively.
Higher spending and continuous innovation in the product pipeline has been a catalyst for The Trade Desk. The momentum is expected to have driven the top-line growth.
During the to-be-reported quarter, the company introduced Galileo that helps advertisers easily onboard and activate their first-party data. This is expected to have increased its adoption among the advertisers, driving the top line.
Strong customer retention is expected to have pushed up the company’s revenues during the quarter. The Trade Desk’s customer-retention rate has remained at more than 95% in the recent period.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
The Trade Desk has an Earnings ESP of 0.00% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle:
Docebo (DCBO - Free Report) has an Earnings ESP of +33.33% and sports a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Docebo shares are up 13.6% year to date. DCBO is set to report first-quarter fiscal 2023 results on May 11.
MakeMyTrip Limited (MMYT - Free Report) has an Earnings ESP of +78.95% and a Zacks Rank #2.
MakeMyTrip shares have declined 7.3% year to date. MMYT is set to report its fourth-quarter fiscal 2023 results on May 16.
Cisco Systems (CSCO - Free Report) has an Earnings ESP of +1.59% and a Zacks Rank #3.
Cisco shares are down 2.8% year to date. CSCO is set to report its third-quarter fiscal 2023 results on May 17.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.