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Trade Desk Inc(TTD-Q)
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The Trade Desk (TTD) Q1 Earnings Report Preview: What To Look For

StockStory - Tue May 7, 2:09AM CDT

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Advertising software maker The Trade Desk (NASDAQ:TTD) will be reporting results tomorrow after market close. Here's what you need to know.

The Trade Desk beat analysts' revenue expectations by 4% last quarter, reporting revenues of $605.8 million, up 23.4% year on year. It was an impressive quarter for the company, with optimistic revenue guidance for the next quarter and a solid beat of analysts' billings estimates.

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

This quarter, analysts are expecting The Trade Desk's revenue to grow 25.5% year on year to $480.5 million, improving from the 21.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.22 per share.

The Trade Desk Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The Trade Desk has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.7% on average.

Looking at The Trade Desk's peers in the sales and marketing software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Zeta delivered year-on-year revenue growth of 23.7%, beating analysts' expectations by 4.2%, and GoDaddy reported revenues up 7%, topping estimates by 1.1%. GoDaddy's stock price was unchanged following the results.

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

Investors in the sales and marketing software segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. The Trade Desk is up 5.4% during the same time and is heading into earnings with an average analyst price target of $95 (compared to the current share price of $91.32).

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