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What To Expect From The Trade Desk’s (TTD) Q4 Earnings

StockStory - Wed Feb 14, 1:01AM CST

TTD Cover Image

Advertising software maker The Trade Desk (NASDAQ:TTD) will be reporting results tomorrow after the bell. Here's what investors should know.

Last quarter The Trade Desk reported revenues of $493.3 million, up 24.9% year on year, beating analyst revenue expectations by 1.2%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter.

Is The Trade Desk buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting The Trade Desk's revenue to grow 18.6% year on year to $582.2 million, slowing down from the 24% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.43 per share.

The Trade Desk Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 2.3%.

Looking at The Trade Desk's peers in the sales and marketing software segment, some of them have already reported Q4 earnings results, giving us a hint what we can expect. LiveRamp delivered top-line growth of 9.6% year on year, beating analyst estimates by 1.2% and GoDaddy reported revenues up 5.8% year on year, missing analyst estimates by 0.1%. LiveRamp traded down 2.3% on the results, and GoDaddy was flat on the results.

Read our full analysis of LiveRamp's results here and GoDaddy's results here.

There has been positive sentiment among investors in the sales and marketing software segment, with the stocks up on average 3.6% over the last month. The Trade Desk is up 14.5% during the same time, and is heading into the earnings with analyst price target of $77.9, compared to share price of $72.9.

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