Digital advertising firm Trade Desk rebounded with a better-than-expected first quarter after lowering expectations in early 2025. Trade Desk stock climbed on Friday amid management commentary that a new advertising platform has gained traction with customers.
The company reported March quarter earnings after the market close on Thursday. On the stock market today, TTD stock popped more than 15% to 69 in early trading.
"Trade Desk bounced back from company-specific challenges in the fourth quarter," said RBC Capital analyst Matthew Swanson in a report. "Management was pleased with the early results from the Q4 re-org while also seeing an uptick in Kokai (new ad platform) demand and a stable demand environment. Assuming (economic) macros stay stable to what they've seen in Q2 to-date, management guided revenue in-line to consensus."
Susquehanna Financial analyst Shyam Patil said in a report: "The recent go-to-market and product changes are already paying off."
In Q1, Trade Desk earnings rose 27% to 33 cents per share, the company said. Revenue rose 25% to $616 million. Further, Trade Desk stock analysts expected earnings of 25 cents a share on sales of $576 million, according to FactSet.
Trade Desk Tops EBITDA Views
The Ventura, Calif.-based company said Q4 earnings before interest, taxes, depreciation and amortization (EBITDA) rose 28% to nearly $208 million vs. estimates of $148 million.
For the June quarter, Trade Desk said it expects revenue of $682 million, roughly in-line with estimates, and EBITDA of $257 million, also meeting expectations.
"Trade Desk is optimistic on its ability to build on the recent strategic changes and upgrades implemented last quarter," said William Blair analyst Ralph Schackart in a report. "Second, Kokai gaining momentum. The core product has been delivered and adoption is running ahead of schedule. About two-thirds of the company's clients are using the product, and it expects all clients to be using it by year-end.
Trade Desk has hired a new chief operating officer, Vivek Kundra.
Heading into the Trade Desk earnings report shares had retreated 49% in 2025.
Trade Desk Stock Technical Ratings
The company's automated platform enables brands and ad agencies to buy online and mobile ads in real time, rather than in advance manually. In addition, Trade Desk helps clients leverage online data to improve their targeted advertising.
Further, internet TV (also called connected TV) has been a growth driver for Trade Desk stock as more video streaming services become advertising supported.
Susquehanna's Patil said Trade Desk stock may get a boost from the Department of Justice's antitrust lawsuit versus Google-parent Alphabet.
Meanwhile, Trade Desk stock holds an IBD Composite Rating of 60, according to IBD Stock Checkup.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. Also, the best growth stocks have a Composite Rating of 90 or better.
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