News

The Trade Desk TTD is set to release its first-quarter 2024 results on May 8.

For the first quarter, the company expects revenues of at least $478 million, indicating growth of 25% year over year.

The Zacks Consensus Estimate for the top line is currently pegged at $480.03 million, suggesting a 25.4% increase year over year.

The consensus mark for earnings is estimated to be 22 cents per share, unchanged in the past 30 days.

The Trade Desk Price and EPS Surprise

The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the same on one occasion, with an earnings surprise of 23.44%, 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 increase in digital spending in key areas such as Connected TV (CTV) and retail media.

TTD is expanding its footprint among marketers who are increasingly spending more on premium videos like CTV. This is expected to have contributed to the company’s performance in the quarter to be reported.

Strong momentum across TTD’s two initiatives, namely UID2 and OpenPass, which focus on identity and authentication in the post-cookie era, is expected to have benefited from increased demand for its advertising services in the first quarter.

The Trade Desk’s expanding partner base, which includes the likes of HP HPQ, Warner Bros. Discovery WBD and Walmart WMT, is expected to have driven top-line growth in the to-be-reported quarter.

In the fourth quarter, Warner Bros. Discovery announced its integration with UID2 across its premium entertainment, sports, news and lifestyle brands, extending to its digital platforms such as Max and Discovery+.

Walmart Connect also announced its initiation of testing the integration of UID2 to enhance decision-making capabilities across the open internet within the Walmart DSP.

HP implemented UID2 for CTV campaigns on platforms such as Disney and Hulu in the fourth quarter, resulting in enhanced targeting and decreased ad spend wastage.

The Trade Desk currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.