Trade Desk Q3 revenue beats estimates

The Trade Desk

06/11/2025 21:09

Overview

Trade Desk Q3 revenue grows 18% yr/yr, beating analyst expectations

Adjusted EPS for Q3 beats consensus, reflecting robust operational performance

Company announces $500 mln share repurchase authorization, indicating confidence in future growth

Outlook

Company expects Q4 2025 revenue of at least $840 mln

Company anticipates Q4 2025 adjusted EBITDA of approximately $375 mln

Trade Desk sees opportunity to capture more market share in data-driven advertising

Result Drivers

PRODUCT INNOVATIONS - New product innovations on the Kokai platform drove revenue growth by enhancing data-driven advertising capabilities

AI TRANSFORMATION - AI's role in transforming the advertising ecosystem supported strong performance, as customers rely on The Trade Desk for data-rich buying

STRATEGIC PARTNERSHIPS - Partnerships and product upgrades like Audience Unlimited and OpenAds expanded market reach and improved transparency

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$739 mln
$718.69 mln (34 Analysts)
Q3 Adjusted EPS
Beat
$0.45
$0.44 (20 Analysts)
Q3 EPS
$0.23
Q3 Net Income
$116 mln
Q3 Adjusted EBITDA Margin
43.00%
Q3 EBIT
$161.22 mln
Q3 Pretax Profit
$179.52 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 14 "hold" and 5 "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Trade Desk Inc is $68.00, about 29.9% above its November 5 closing price of $47.70

The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 44 three months ago

Press Release: ID:nBwbktVDpa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)