The Trade Desk Q1 preview: will macroeconomic pressures impact quarterly performance?
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The Trade Desk (NASDAQ:TTD) is scheduled to announce Q1 earnings results on Tuesday, May 10th, after market close.
The technology company posted Q4 earnings that topped Wall Street consensus but fell short of historically heavy quarterly revenue growth. Revenue that grew 24% Y/Y to $395.6M, but this marked the first time in six quarters that revenue growth dipped below 31%.
For Q1, The Trade Desk (TTD) guided to revenue of at least $303M and EBITDA of about $91M. The consensus EPS Estimate is $0.14 (-90.1% Y/Y) and the consensus Revenue Estimate is $304.28M (+38.4% Y/Y).
A price comparison of TTD's YTD price return vs peers:

Shares have dropped over 7% a day ahead of the market close, after both Jefferies and RBC cut their price target to $85 from $105. RBC analysts suggested that TTD's Q1 may be its "most challenging macro quarter of the year".
RBC expects results to fall within its estimates, but without the magnitude of growth seen in the past. Management is expected to maintain their conservative guidance given the challenging macro environment.
KeyBanc analyst Justin Patterson also expects TTD to perform within expectations, given that it is "diversified across verticals, has (less than) 10% Europe exposure, and had not seen ad pullbacks", even as macroeconomic pressures and high inflation put negative pressure on the internet advertising sector in general.
Market challenges are expected to ease towards the second half of the year, with "some recovery from the travel and retail verticals seen in peers" according to RBC, which also highlighted TTD's "diversification of its business across both formats and verticals" as a positive.
SA contributor Albert Lin also highlighted Netflix's decision to go into advertising as a reason for his bullish take on TTD, noting that "as the largest independent DSP, TTD is firmly positioned as a major beneficiary of an increasingly ad-supported future for digital entertainment".
Over the last 2 years, TTD has beaten EPS estimates 100% of the time and has beaten revenue estimates 100% of the time.
Over the last 3 months, EPS estimates have seen 7 upward revisions and 0 downward. Revenue estimates have seen 12 upward revisions and 0 downward.