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yesterday

The Trade Desk Sees 25% Revenue Growth in Q1 2025, Stock Rebounds

Following a rare revenue miss in Q4 2024, The Trade Desk exceeded guidance with $616 million in Q1 revenue, but challenges in CTV and agency relations persist.

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Overview

  • The Trade Desk reported Q1 2025 revenue of $616 million, a 25% year-over-year increase, surpassing its guidance of at least $575 million.
  • The company issued optimistic Q2 revenue guidance of at least $682 million, signaling confidence in its ongoing turnaround strategy.
  • The stock price rose by double digits in after-hours trading following the earnings report, reflecting positive market sentiment.
  • Despite its rebound, The Trade Desk faces challenges including strained agency relationships, competition from Mediaocean, and the fragmented CTV landscape after losing Sonos as a hardware partner.
  • Adoption of The Trade Desk's Kokai platform has grown, with two-thirds of clients now using it, while its customer retention rate remains strong at 95%.