The Trade Desk (NASDAQ:TTD) Surprises With Q3 Sales But Stock Drops

Digital advertizing level The Trade Desk (NASDAQ:TTD) reported Q3 CY2025 results exceeding the market’s gross expectations , with income up 17.7% twelvemonth connected twelvemonth to $739.4 million. Guidance for adjacent quarter’s gross was amended than expected astatine $840 cardinal astatine the midpoint, 1% supra analysts’ estimates. Its non-GAAP nett of $0.45 per stock was successful enactment with analysts’ statement estimates.

Is present the clip to bargain The Trade Desk? Find retired successful our afloat probe report.

• Revenue: $739.4 cardinal vs expert estimates of $719.4 cardinal (17.7% year-on-year growth, 2.8% beat)

• Adjusted EPS: $0.45 vs expert estimates of $0.44 (in line)

• Adjusted EBITDA: $317.5 cardinal vs expert estimates of $278.8 cardinal (42.9% margin, 13.9% beat)

• Revenue Guidance for Q4 CY2025 is $840 cardinal astatine the midpoint, supra expert estimates of $831.6 million

• EBITDA guidance for Q4 CY2025 is $375 cardinal astatine the midpoint, supra expert estimates of $367.6 million

• Operating Margin: 21.8%, up from 17.3% successful the aforesaid 4th past year

• Free Cash Flow Margin: 21%, up from 16.8% successful the erstwhile quarter

• Market Capitalization: $23.32 billion

“Q3 was different beardown 4th for The Trade Desk, with gross increasing to $739 million, representing 18% year-over-year growth,” said Jeff Green, CEO and Co-Founder of The Trade Desk.

Built arsenic an alternate to "walled garden" advertizing ecosystems, The Trade Desk (NASDAQ:TTD) provides a cloud-based level that helps advertisers and agencies plan, manage, and optimize integer advertizing campaigns crossed aggregate channels and devices.

A company’s semipermanent income show tin bespeak its wide quality. Any concern tin enactment up a bully 4th oregon two, but galore enduring ones turn for years. Luckily, The Trade Desk’s income grew astatine an awesome 30.7% compounded yearly maturation complaint implicit the past 5 years. Its maturation surpassed the mean bundle institution and shows its offerings resonate with customers, a large starting constituent for our analysis.

We astatine StockStory spot the astir accent connected semipermanent growth, but wrong software, a half-decade humanities presumption whitethorn miss caller innovations oregon disruptive manufacture trends. The Trade Desk’s annualized gross maturation of 23.4% implicit the past 2 years is beneath its five-year trend, but we inactive deliberation the results suggest steadfast demand.

This quarter, The Trade Desk reported year-on-year gross maturation of 17.7%, and its $739.4 cardinal of gross exceeded Wall Street’s estimates by 2.8%. Company absorption is presently guiding for a 13.4% year-on-year summation successful income adjacent quarter.