Trade Desk's Q4 Results Miss Expectations, Stocks Tumble

Trade Desk's recent Q4 results lead to stock declines. EPS of $0.59 fell below estimates, signaling possible future challenges for the firm as investors react cautiously.

Date: 14-02-2025

AI Rating: 4

Earnings Per Share (EPS): Trade Desk reported earnings of $0.59 per share, which exceeded the consensus estimate of $0.57. However, this positive aspect is tempered by the company's lower forward guidance.

Revenue Growth: The company's revenue of $741 million in Q4 reflected a 22% year-over-year increase, but it fell short of the market expectations of $760 million. This shortfall could raise concerns about the company's ability to maintain robust growth in the future.

Net Income: The document does not provide specific figures on net income, making it difficult to assess this critical metric directly.

Profit Margins: Trade Desk's adjusted EBITDA margin remained steady at 47%, indicating efficient cost management despite the revenue miss. This margin is a positive indicator within the context of the overall performance.

Free Cash Flow (FCF): There is no information about Free Cash Flow available in the report.

Return on Equity (ROE): The report does not mention Return on Equity, so we cannot evaluate this aspect.

In summary, while Trade Desk shows strong customer retention and impressive revenue growth year-over-year, its inability to meet revenue and earnings estimates has led to a negative market reaction. The outlook suggests potential challenges ahead, which could continue to affect stock performance.

Stocks: TTD