Trade Desk Turnaround: Analyst Sees Company Returning To 20% Growth After Impressive Earnings

Trade Desk, Inc. (NASDAQ:TTD) shares are shooting up following the company’s reported better-than-expected first-quarter results late Thursday.

The company reported quarterly earnings of 33 cents per share, which beat the analyst consensus estimate of 25 cents, and revenue of $616.02 million, which beat the consensus estimate of $584.27 million.

The company expects second-quarter revenue to be at least $682 million, versus the consensus estimate of $685.04 million.

KeyBanc analyst Justin Patterson raised the price target from $67 to $80, while keeping an Overweight rating.

The analyst writes that he views the fourth-quarter report as an isolated miss, and the first quarter’s significantly better-than-expected results appear to confirm this.

Trade Desk’s success in driving the adoption of their Kokai platform seems to be leading to improved Return On Ad Spend (ROAS) and enabling advertisers to reach audiences, adds the analyst.

The analyst says that while near-term macroeconomic conditions remain a concern, he believes Trade Desk’s improved execution increases the likelihood of them returning to a 20% growth rate as the economic environment improves.

The analyst slightly lowered the second half revenue outlook due to macro and political comps, reducing 2025/2026 revenue estimates by ~1% to $2.83 billion/$3.36 billion (+16%/+19%).

Needham analyst Laura Martin writes that following a guidance miss in the fourth quarter, the company demonstrated a return to strong performance in the first quarter of 2025, exceeding expectations across key financial metrics.

The company is also making headway on the 15 strategic initiatives outlined in the previous quarter, including Kokai, OpenPath and their organizational realignment, adds the analyst.

Martin revised FY25 estimates for revenue to $2.9 billion (1% lower than the previous forecast) and adjusted EPS to $1.73 ($0.01 lower than the previous projection).

Also, the analyst adjusted FY26 estimates for revenue to $3.34 billion (5% below the prior estimate) and adjusted EPS to $2.09 (15% below the previous estimate).

TTD Price Action: TTD shares are up 18.87% at $71.17 at publication on Friday.

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