Trade Desk Jumps on AI-Driven Q1 Beat

Moz Farooque

Fri, May 9, 2025, 1:46 PM 1 min read

Trade Desk (NASDAQ:TTD) reported first-quarter gross of $616 million, up 25% year-over-year and topping the $576.1 cardinal consensus. Adjusted EBITDA came successful astatine $208 millionwell supra the $147.8 cardinal estimatedelivering a 34% borderline versus Street's 33%.

• Warning! GuruFocus has detected 2 Warning Sign with TTD.

Net income roseate to $50.8 million, oregon $0.10 per share, versus $31.7 cardinal ($0.06) a twelvemonth earlier, portion adjusted EPS of $0.33 bushed expectations by $0.08. Customer retention remained northbound of 95%, underscoring sticky request adjacent amid macro volatility.

CEO Jeff Green said KokaiTrade Desk's AI-powered level adopted by two-thirds of clientsis cutting costs by 24% per conversion and 20% per acquisition, driving large deals successful programmatic advertising. Wedbush-style strategical upgrades rolled retired successful Q4 besides fueled momentum, with the institution eyeing afloat Kokai adoption by year-end.

For Q2, Trade Desk expects astatine slightest $682 cardinal successful gross and astir $259 cardinal successful adjusted EBITDA, somewhat supra statement of $680.7 cardinal and $254.6 million. The guidance suggests continued spot successful AI-enabled targeting and level leverage.

Why It Matters: Trade Desk's robust metrics and full-year roadmap item AI's rising relation successful adtech and could awesome sustained outperformance for software-focused semiconductors.

Investors volition ticker Q2 resultsdue aboriginal this yearfor impervious that Kokai tin thrust the adjacent limb of growth.

This nonfiction archetypal appeared connected GuruFocus.